10
QuizMultiple Choice

Insurance and Financial Protection — Quiz

Question 10 • Personal Finance

What is a premium?

Answer
A
Payment after a claim
B
Total medical cost
C
Regular cost for coverage
D
Insurance payout

Explanation

A premium is the regular amount you pay to keep insurance coverage, often monthly. It is different from the cost of medical care or the payout an insurer makes after a covered claim. Therefore, the correct choice is “Regular cost for coverage.”

AI-written and checked against the verified answer.