What term refers to the amount paid for coverage under an insurance policy?

The term that refers to the amount paid for coverage under an insurance policy is "premium." In insurance, the premium is essentially the price of the insurance policy, representing the cost that policyholders must pay to maintain their coverage. This amount can be paid on a monthly, quarterly, or annual basis, depending on the terms of the policy. The premium is based on various factors, such as the type and amount of coverage, the insurer's assessment of risk, and the individual's claims history.

Understanding how premiums work is crucial for both consumers and agents, as it directly impacts affordability and the financial aspects of acquiring insurance. By paying the premium, policyholders gain access to the coverage specified in their policy, which provides financial protection against certain risks or losses.