Final answer:
Individual protection plans often involve a deductible and cost-sharing mechanisms like co-insurance or co-payments. The insurance premium might be a fixed monthly fee, a percentage of the device cost, or an annual lump sum, but typically not variable based on usage.
Step-by-step explanation:
When it comes to individual protection plans, such as insurance (health, device, or otherwise), the price is usually calculated based on a combination of factors. A typical health insurance plan may involve a deductible, which is a fixed amount the insured must pay before insurance starts to cover expenses.
After the deductible is met, the individual and the insurer share the costs through mechanisms such as co-insurance or co-payment. Co-insurance is typically a percentage of the total costs that the insured is responsible for paying; for instance, an individual might have to pay 20% of the cost for medical service with the insurance covering the remaining 80%.
On the other hand, co-pay is a fixed amount for certain services, like $20 for a doctor's visit or $250 for an emergency room visit. This structure can be similar in device insurance plans, where there may be a fixed deductible or a percentage based on the device's cost, but it is not typically based on usage.