What term refers to the total premium paid by the policyowner, generally consisting of the net premium plus operational expenses minus interest?

The term that refers to the total premium paid by the policyowner is the gross premium. It encompasses all the costs associated with a life or health insurance policy, including the net premium, which is the amount needed for the insurer to cover the expected risk of claims. Additionally, the gross premium includes operational expenses and is adjusted to account for any interest that might be earned on reserves. This comprehensive approach ensures that the insurance provider can cover its financial obligations while maintaining profitability.

Understanding the gross premium is essential for both the policyowner and the insurer, as it provides insight into the overall cost of the insurance coverage being provided. It allows for better budgeting and financial planning regarding insurance needs.

In contrast, the other terms, such as net premium, variable premium, and fixed premium, serve different functions within insurance calculations. The net premium is strictly the amount required to fund the policy's expected benefits, while variable and fixed premiums refer to specific types of payment structures and do not capture the total costs associated with operating the insurance.