Question

You have an insurance policy with a $300 premium and a $500 deductible. How much should you expect to pay the insurance company each month for coverage?

Answer 1

Hi, consider the answer below.

first let us go through the question;

You have increased an insurance policy with a $300 premium and a $500 deductible. Then how much should you expect to pay the insurance company each month for coverage.

In my view, what you are supposed to pay is $300. If you have an insurance policy with a $300 premium and a $500 deductible, you should expect to pay $300 to the insurance company each month for coverage.

Answer 2

The answer is option B).

You are expected to pay the insurance company premium at  $300 per month for insurance coverage.

Clarification: To avail coverage by the insurance company, you should pay insurance premium every month.

The premium amount is fixed throughout the period as per the policy document.

As soon as this amount is paid up, the company will bear the expenses up to the same amount on a monthly basis.

If the amount surpass this, then it has to be paid by the insurer.