Answer :
Final answer:
The cost that is always associated with buying insurance is the premium, which is the regular payment made to maintain coverage. Other costs, such as deductibles and co-payments, vary based on the specific insurance plan and usage. Thus, among the options provided, the premium is the most consistent expense.
Explanation:
Understanding Insurance Costs
When buying insurance, there are several costs to consider. Among these, the premium is the amount that a policyholder must pay regularly to maintain the insurance coverage. This is the most consistent and unavoidable cost associated with insurance.
Other costs associated with insurance include:
- Deductible: This is the amount you must pay out-of-pocket for certain expenses before the insurance coverage kicks in. For example, if your deductible is [tex]$500, you need to pay that amount for your health care expenses before the insurance starts paying.
- Co-payment: This is a fixed amount you pay per service, such as $[/tex]20 for a doctor’s visit.
- Payout: This refers to the compensation the insurance company provides when you make a claim, but it is not a cost you incur upfront.
In conclusion, the 'premium' is the only cost that is always incurred when buying insurance, as it is the payment required to keep your policy active.
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