What is the term for the initial amount paid by the policyholder for insurance coverage?

The term that accurately describes the initial amount paid by the policyholder for insurance coverage is "Initial Premium." This payment represents the upfront cost required to activate the insurance policy and secure coverage for the policyholder. It is typically calculated based on various factors such as the type of insurance, the amount of coverage desired, and the policyholder's risk profile.

Understanding this term is essential as it lays the foundation for how insurance policies are structured financially. It sets the stage for any subsequent premium payments that may be required on a regular basis, such as monthly or annually, to maintain coverage.

The other terms presented do not typically represent this initial fee in the insurance context. "Base Premium" often refers to the regular recurring charge, whereas "Deposit Fee" and "Setup Charge" imply fees linked to administrative actions rather than the cost of purchasing insurance coverage itself.