Other

Question

.

Gabe's health insurance premium is $500 per month.

Which of the following statements is true for Gabe?

a.) The $500 is the amount that Gabe has to pay before the

insurance company pays the remaining costs.

b.) The $500 is the recurring payment Gabe makes to the insurance

company to keep the policy active.

c.) The $500 is the maximum amount that the insurance company

will pay toward a claim.

d.) The $500 is the fixed amount that Gabe has to pay every time

he files an insurance claim.

Answer

b.) The $500 is the recurring payment Gabe makes to the insurance company to keep the policy active.

Download to view full explanation

Option b is correct because a health insurance premium is the amount of money that an individual or their employer pays to an insurance company to maintain health coverage. It is a recurring payment that is made monthly, quarterly, or annually to keep the policy active. The premium is not the amount that Gabe has to pay before the insurance company pays the remaining costs (option a), nor is it the maximum amount that the insurance company will pay toward a claim (option c) or the fixed amount that Gabe has to pay every time he files an insurance claim (option d).