What is the money paid to the insurance company for the policy?

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Multiple Choice

What is the money paid to the insurance company for the policy?

Premium is the money paid to the insurance company to obtain and maintain the policy’s coverage. It funds the insurer for taking on the risk and keeps the contract active. The policyowner is the person who owns the policy (they may or may not be the insured). The insured is the person whose life or health is protected, and the insurer is the company issuing the policy. Paying the premium on time keeps the coverage in force; missing payments can lead to a lapse.

Premium is the money paid to the insurance company to obtain and maintain the policy’s coverage. It funds the insurer for taking on the risk and keeps the contract active. The policyowner is the person who owns the policy (they may or may not be the insured). The insured is the person whose life or health is protected, and the insurer is the company issuing the policy. Paying the premium on time keeps the coverage in force; missing payments can lead to a lapse.

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