Select the correct answer.

Question

Which of the following statements is true about insurance?

A.
Higher deductible plans usually carry lower premium costs.
B.
Life insurance costs are the same for each individual living in a certain area.
C.
A person with a few accidents on their driving record will typically pay less for car insurance than someone with no accidents.
D.
Co-pays are the monthly payments you make to the insurance company.

Answer 1

The correct answer is:

A. Higher deductible plans usually carry lower premium costs.

This statement is true; typically, plans with higher deductibles require lower monthly premiums, as the insured assumes more of the risk upfront. The other statements are false: Life insurance costs can vary significantly based on individual risk factors; a person with a few accidents usually pays more for car insurance than someone with no accidents; and co-pays are out-of-pocket costs for medical services, not monthly payments (premiums) to the insurance company.