MANAGEMENT

BUISENESS MANAGEMENT

INSURANCE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
How does premium impact deductible?
A
The higher the premium the higher the deductible
B
The lower the premium the higher the deductible
C
The lower the premium the lower the deductible
D
There is no correlation between premium & deductible
Explanation: 

Detailed explanation-1: -In most cases, the higher a plan’s deductible, the lower the premium. When you’re willing to pay more up front when you need care, you save on what you pay each month. The lower a plan’s deductible, the higher the premium.

Detailed explanation-2: -The higher a deductible, the lower the annual, biannual or monthly insurance premiums may be because the consumer is assuming a portion of the total cost of a claim.

Detailed explanation-3: -Plans with lower deductibles and higher premiums are recommended for people who expect a considerable amount of medical care. Those with chronic illnesses, the need to see several specialists, or possible hospitalizations in the coming year will save more in the long run with a lower deductible.

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