Answer :

Final answer:

The cost that is always incurred when buying insurance is the premium, which is the payment made to maintain coverage. Other costs like deductibles and co-payments can depend on claims or services used. However, only the premium is a required cost regardless of claim status.


Explanation:

Understanding Insurance Costs

When buying insurance, various costs can be involved. Among the options provided, the cost that is always present is the premium. The premium is the amount you pay to the insurance company in exchange for coverage, typically paid on a monthly or annual basis.

Here’s a breakdown of the other options:

  • Deductible: This is the amount you pay out-of-pocket before the insurance coverage kicks in, but it is not paid if you do not make a claim.
  • Co-payment: This is a fixed amount you pay for certain services or prescriptions, which also depends on the service received.
  • Payout: This is the amount the insurance company will pay in the event of a claim, and it is not a direct cost incurred by the insured.

In summary, the premium is the consistent cost associated with maintaining an insurance policy.


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