What does "premium" refer to in health insurance?

In health insurance, "premium" specifically refers to the amount that a policyholder must pay to maintain their insurance coverage. This payment is often made on a monthly basis and is essential for keeping the insurance policy active. The premium is essentially the cost of the insurance policy itself, allowing the insured individual to access various health benefits, services, and treatments outlined in the policy.

Understanding this term is crucial for anyone involved in health insurance, as it is one of the primary costs associated with obtaining coverage. When evaluating different insurance options, individuals often compare premiums alongside the benefits, deductibles, and other key components of a policy to determine the best overall value. Other options, such as deductible amounts, total coverage, and number of beneficiaries, are related to the terms of the policy but do not define what a premium is.