What term describes the payment made by a policyholder to an insurance company for coverage?

The term that refers to the payment made by a policyholder to an insurance company for coverage is known as an insurance premium. This premium represents the cost of purchasing the insurance policy and is typically paid on a regular basis, such as monthly or annually. The insurance premium is essential for maintaining the coverage the policyholder receives, as it allows the insurance company to pool funds and manage risks associated with underwriting policies.

In contrast, other terms like deductible, co-payment, and policy fee refer to different aspects of insurance. A deductible is the amount a policyholder must pay out of pocket before the insurance coverage kicks in. A co-payment is a fixed amount a policyholder pays for certain services, often used in health insurance. A policy fee is a charge imposed by the insurer often related to administrative costs and does not represent the primary cost of the coverage itself. Thus, identifying the insurance premium as the correct term is crucial for understanding the financial aspects of insurance policies.