The price for an insurance policy is known as a?

The price for an insurance policy is referred to as a premium. This term specifically relates to the amount of money that an individual or business must pay to keep an insurance policy in force. The premium can be paid on a monthly, quarterly, or annual basis and is essential for the insured to receive coverage under the policy.

In the realm of insurance, the premium is calculated based on various factors, including the level of coverage, the type of insurance, and the risk associated with insuring the individual or entity. Understanding the concept of a premium is crucial for anyone looking to purchase insurance, as it directly impacts the financial commitment involved in obtaining protection against potential risks.

The other options do not accurately describe the insurance policy cost. A bill generally refers to an invoice for services rendered or goods purchased, not specifically insurance. A dividend pertains to a portion of a company's earnings distributed to shareholders, while interest refers to the cost of borrowing money or the return earned on savings. Each of these terms has its own context and meaning that is distinct from that of an insurance premium.