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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

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Solution

To determine the correct answer to the question about insurance benefits, we need to analyze the options provided:

  1. Liabilities - This term refers to financial obligations or debts that a person or company owes, which is not specifically related to insurance payments.

  2. 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.

  3. Compensation - This typically refers to payments made to beneficiaries or the insured after a covered loss occurs, not monthly payments.

  4. 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.

This problem has been solved

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