Answer :
The cost that is always associated with buying insurance is the premium.
When purchasing insurance, the premium is the amount of money that the policyholder pays to the insurance company in exchange for coverage. This payment can be made on a monthly, quarterly, or annual basis. While other costs such as deductibles, co-payments, and payouts may vary depending on claims and usage, the premium is a fixed cost that is required to maintain the insurance policy. For example, if you buy health insurance, you may have to pay a premium of $200 per month to keep your coverage active. This is different from a deductible or co-payment, which are amounts you pay when you make a claim. The payout is what the insurance company pays when a claim is approved. Hence, the premium is the consistent cost that occurs regardless of whether you make any claims or not.
Final answer:
The premium is always a cost that you have to pay when buying insurance.
Explanation:
When buying insurance, the premium is always a cost that you have to pay. The premium is the amount of money you have to pay periodically, typically monthly or annually, to maintain your insurance coverage. It is a fixed cost that you cannot avoid.
For example, if you buy car insurance, you will need to pay a premium to the insurance company on a regular basis in order to keep your coverage active.
Therefore, the premium is always a cost that you have to bear when buying insurance.
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