15.2k views
4 votes
A client pays a set amount each month for a pet health insurance policy. Which of the following describes the term for this monthly payment?

1) Per-incident limit
2) Lifetime limit
3) Premium
4) Deductible

1 Answer

3 votes

Final answer:

A monthly payment for pet health insurance is called a premium, which is separate from cost-sharing mechanisms like deductibles, copayments, and coinsurance.

Step-by-step explanation:

The correct answer to the question of what the monthly payment for a pet health insurance policy is called is the premium. Insurance terms such as deductible, copayment, and coinsurance are related to cost-sharing mechanisms that determine how much the policyholder will pay out-of-pocket when a claim is made. In contrast, the premium is a periodic payment made to the insurance company to keep the policy active, which is not tied to specific claims or incidents.

User Ycomp
by
9.1k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories