What is the term for the amount paid to an insurance company for coverage?

The correct term for the amount paid to an insurance company for coverage is "premium." A premium is the ongoing cost that policyholders must pay, usually on a monthly or annual basis, to maintain their insurance coverage. This payment ensures that the insurer will provide financial protection and benefits as outlined in the insurance policy.

In the context of insurance, understanding what constitutes a premium is crucial because it is a fundamental element of the insurance contract. The amount of the premium can vary based on various factors, including the type of coverage, the level of risk associated with the insured, and the individual's demographic factors such as age or health status.

Other terms such as "excess," "deductible," and "out-of-pocket expense" represent different aspects of insurance costs. For instance, an excess is typically a predetermined amount that must be paid by the policyholder before an insurer will pay a claim. A deductible is a specific amount deducted from a covered loss, meaning the policyholder covers this initial expense before the insurance applies. Lastly, out-of-pocket expenses are costs that the insured must pay themselves for healthcare services, which may or may not be covered by insurance. These terms highlight different financial responsibilities but are not synonymous with the premium paid to maintain coverage.