Answer :
Final answer:
The cost that is always present when buying insurance is the premium, which is paid to maintain coverage. Other costs like deductibles and co-payments can vary depending on the policy and claims made. Always remember that the premium is constant and necessary to keep your insurance active.
Explanation:
Understanding Insurance Costs
When buying insurance, there are several costs associated with it, but the one that is always required is the premium. The premium is the amount you pay, typically on a monthly or annual basis, to maintain your insurance coverage. It is the primary cost incurred regardless of the number of claims you make or the deductible applied.
To clarify the other terms for a better understanding:
- Deductible: This is the amount you must pay out-of-pocket before your insurance kicks in for a claim. It is not a constant cost but varies based on your policy and claims made.
- Co-payment: This is a fixed amount you pay for specific services or prescriptions in health insurance, and it is also not a fixed cost like the premium.
- Payout: This refers to the amount an insurance company pays on a claim, which is dependent on the terms of your policy.
In summary, while other costs like deductibles and co-payments may vary, the premium is always necessary to secure insurance coverage.
Learn more about insurance here:
https://brainly.com/question/28562565