How is an insurance premium defined?

An insurance premium is defined as the periodic payment made for health insurance coverage. This amount is typically billed monthly, quarterly, or annually and is required to keep the insurance policy active. The premium ensures that the insured individual has access to the healthcare services specified in their policy, allowing them financial protection against high medical costs.

The other options provide related but distinct terms within health insurance. For example, the total amount spent on medical expenses per year would refer to out-of-pocket costs incurred by the insured rather than the cost of the insurance itself. A deductible is a specific amount that the insured must pay out-of-pocket before the insurance begins to cover claims, while a co-payment is a fixed amount the insured pays for specific services at the time of the visit. These terms are important components of an insurance policy but do not define the premium itself.