Asked by Saarthak Sharma on Jun 04, 2024
Verified
To signal to your insurance company that you are a low risk individual you should
A) Accept an insurance policy with no co-payments
B) Accept an insurance policy with co-payments
C) Accept an insurance policy with a low deductible
D) None of the above
Insurance Company
A business entity that provides financial protection and risk management to individuals and organizations against potential losses in exchange for premium payments.
Low Risk
Describes investments or activities with a low probability of loss or failure.
Co-Payments
A fixed fee that a patient pays for healthcare services, in addition to what is covered by insurance, often used to share the cost of care.
- Understand the significance of deductibles, co-payments, and premiums in the context of insurance plans.
Verified Answer
TB
Theresa BettyJun 09, 2024
Final Answer :
B
Explanation :
Accepting an insurance policy with co-payments signals to your insurance company that you are willing to share the cost of your healthcare, which can indicate that you are a lower risk individual. This is because you are less likely to seek unnecessary medical care if you have to pay a portion of the cost out of pocket.
Learning Objectives
- Understand the significance of deductibles, co-payments, and premiums in the context of insurance plans.