What are recurring monthly payments you pay to an insurance company to keep your health coverage active called?

• A. Copay
• B. Premium
• C. Deductible
• D. Coinsurance

Answer: (B)

Premium is the recurring payment you make to an insurance company to keep your health coverage active. It’s typically paid monthly (or annually) and keeps the policy in force regardless of how often you use medical services. If you miss payments, coverage can lapse.

The other terms describe how you share costs when you do need care: a copay is the fixed amount you pay at the time of a visit; the deductible is the amount you must pay out of pocket before the insurer starts paying; coinsurance is the percentage you pay of covered services after you’ve met the deductible.