What is the term used for the annual fee paid for health insurance coverage?

The correct term for the annual fee paid for health insurance coverage is "premium." The premium is the amount that an individual or employer pays to the insurance company, typically on a monthly or annual basis, to maintain active health insurance coverage. This payment is a key aspect of obtaining and continuing health insurance, and it's essential for ensuring access to healthcare services.

In the context of health insurance, understanding the role of the premium is crucial, as it is the foundational cost associated with obtaining coverage. If the premium is not paid, the insurance coverage can lapse, meaning that the insured would no longer have access to the benefits provided under the policy.

The other terms, while related to health insurance costs, refer to different financial responsibilities. The deductible is the amount the insured must pay out-of-pocket for healthcare services before the insurance begins to pay. A copayment is a fixed amount the insured pays for a specific service at the time of receiving it, and coinsurance is the percentage of costs that the insured must pay after reaching their deductible. Understanding these terms is important for navigating health insurance, but they do not define the annual fee for coverage itself.