In order to receive insurance benefits, customers make monthly payments called _____.A.liabilitiesB.deductiblesC.compensationD.premiums
Question
In order to receive insurance benefits, customers make monthly payments called _____.
A. liabilities
B. deductibles
C. compensation
D. premiums
Solution
To determine the correct answer to the question about insurance benefits, we need to analyze the options provided:
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Liabilities - This term refers to financial obligations or debts that a person or company owes, which is not specifically related to insurance payments.
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Deductibles - Deductibles are amounts that a policyholder must pay out of pocket before the insurance coverage kicks in, but they do not refer to monthly payments made to maintain coverage.
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Compensation - This typically refers to payments made to beneficiaries or the insured after a covered loss occurs, not monthly payments.
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Premiums - In the context of insurance, premiums are the regular payments made by policyholders to maintain their insurance coverage and receive benefits when needed.
Final Answer
The correct answer is D. premiums.
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