Asked by Paola De Lara on Sep 24, 2024
Verified
If you buy an insurance policy with a low deductible and no co-payments,you would end up paying
A) A higher premium
B) A lower premium
C) The premium of a low risk individual
D) Both B&C
Low Deductible
Refers to insurance policies with a smaller initial amount paid out of pocket by the policyholder before the insurance coverage kicks in, typically leading to higher premiums.
Premium
The amount paid for an insurance policy or the extra cost above the normal price for a product or service, often reflecting additional benefits or coverage.
Co-Payments
A fixed amount paid by a patient for healthcare services at the time of service, with the remaining balance covered by insurance.
- Acknowledge the importance of deductibles, co-payments, and premiums in insurance policy agreements.
Verified Answer
HS
Harpreet Singh3 days ago
Final Answer :
A
Explanation :
Insurance policies with lower deductibles and no co-payments typically have higher premiums as they offer more comprehensive coverage with fewer out-of-pocket expenses. This means that if you choose a low deductible and no co-payments, you will pay a higher premium in exchange for the reduced financial risk associated with a potential claim.
Learning Objectives
- Acknowledge the importance of deductibles, co-payments, and premiums in insurance policy agreements.