What is the regular payment made to maintain an insurance policy called?

The regular payment made to maintain an insurance policy is known as the premium. This amount is typically paid monthly, quarterly, or annually and is essential for keeping the insurance coverage active. Premiums are determined based on various factors, including the type of coverage, the insurer's risk assessment, and the insured's profile, such as age, health status, and lifestyle choices. By paying the premium, individuals secure the financial protection that the insurance policy provides against potential risks or losses.

The other terms listed have different meanings in the context of insurance. A deductible refers to the specific amount that the policyholder must pay out-of-pocket before the insurance coverage kicks in for a claim. A copayment is a fixed amount the insured has to pay for specific services or prescriptions, usually at the time of service. Coinsurance denotes the percentage of costs that the insured must pay after the deductible has been met, sharing the expenses with the insurer according to the terms of the policy. Each of these terms plays a vital role in understanding how different components of insurance work, but the premium specifically refers to the regular amount paid to keep the policy in force.