Final answer:
The primary benefit people receive from paying insurance premiums is that the insurance company covers the expenses for certain losses after deductibles and copayments are paid by the insured. This arrangement provides financial protection and lessens the risk for individuals against large, unexpected expenses. Therefore, the correct option is D.
Step-by-step explanation:
The primary benefit that people receive in exchange for paying premiums to an insurance company is that the insurance company will pay for covered expenses. This financial protection ensures that in the event of certain types of losses, such as medical expenses, auto accidents, or property damage, the insurance company will bear most or all the costs associated with these incidents, after the insured pays any deductibles, copayments, or coinsurance amounts that are part of the policy. While the cost of an insurance policy does not decrease over time as a result of paying premiums, and the value of the insurance policy does not appreciate, the reduction in financial risk is considerable for policy holders.