Final Answer:
The term for the set fee that a policyholder must periodically pay for healthcare coverage is the premium.
Step-by-step explanation:
The premium is the predetermined, regular payment made by a policyholder or certificate holder to an insurance company in exchange for coverage. This fee is typically paid monthly, quarterly, or annually, depending on the terms of the insurance policy. The premium is a crucial aspect of healthcare insurance, as it ensures the policyholder continues to receive coverage for medical expenses.
The calculation of the premium considers various factors, including the type of coverage, the policyholder's age, health status, and sometimes geographic location. Insurance companies use actuarial calculations to determine appropriate premium rates that align with the level of risk associated with providing coverage to the policyholder. Actuarial science involves complex mathematical and statistical models to assess and manage risks, ensuring that premiums are set at a level that allows the insurance company to cover potential claims while remaining financially viable.
Understanding the concept of premiums is essential for individuals seeking healthcare coverage, as it represents the financial commitment necessary to maintain access to the benefits outlined in the insurance policy.