What is the term for the payment made to obtain various types of insurance coverage?

The payment made to obtain various types of insurance coverage is referred to as a premium. This term represents the amount a policyholder must pay to maintain their insurance policy and is usually paid on a monthly, quarterly, or annual basis. Paying the premium ensures that the insured individual receives coverage for specified risks under the insurance contract. The amount of the premium can vary widely based on numerous factors, including the type of insurance, the coverage amount, the individual's risk profile, and other underwriting considerations.

Understanding this term is crucial as it helps individuals budget for their insurance needs and comprehend the ongoing costs associated with maintaining their coverage. The other terms listed refer to different concepts in insurance. A deductible is the amount the policyholder must pay out-of-pocket before the insurance coverage kicks in. A copayment is a fixed amount a policyholder pays for specific services at the time of service. Co-insurance refers to the percentage of costs the insured must pay after the deductible has been met. Each of these terms plays a different role in the structure of insurance policies and their overall cost to the policyholder, but they do not directly refer to the initial payment required to secure coverage, which is why the term premium is the correct choice.