Which of the Following Refers to the Amount That You

question 11

Multiple Choice

Which of the following refers to the amount that you must pay on a claim before insurance comes into play?

• A) Transfer risk.
• B) Deductible.
• C) Premium.
• D) Copayment.

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Definitions:

Lump Amount

A single payment made at a particular time, as opposed to several smaller payments or installments.

Retirement Income

Income that a person receives after retiring from active employment, which can include pensions, Social Security benefits, and returns from investments.

Perpetual Scholarship

A scholarship grant maintained indefinitely, often funded by an endowment that generates interest to cover its cost.

Compounded Annually

An interest calculation method where the interest is added to the principal at the end of each year, with the total becoming the principal for the next year.