Define Premium Insurance

A failure to pay premium when due automatically cancels the insurance policy which upon payment of the outstanding amount within a certain period may be restored.

Define premium insurance. The premium is a function of a number of variables like age type of employment medical conditions etc. Insurance premiums are paid for policies that cover healthcare auto home and life insurance. The insurance premium is the amount of money paid to the insurance company for the insurance policy you are purchasing. Premium is an amount paid periodically to the insurer by the insured for covering his risk.

Not all factors are the same across the board as some policies cover persons or property. Insurance premiums will vary depending on the type of coverage you are seeking. An insurance premium is the amount of money an individual or business must pay for an insurance policy. In an insurance contract the risk is transferred from the insured to the insurer for taking this risk the insurer charges an amount called the premium.

Some of the factors that affect premium rates include a person s age gender job occupation health status geography and coverage amounts. Insurance companies consider several factors before issuing a premium amount to the applicant. Your insurance history where you live and other factors are used as part of the calculation to determine the insurance premium price. Insurance premium synonyms insurance premium pronunciation insurance premium translation english dictionary definition of insurance premium.

Financial cost of obtaining an insurance cover paid as a lump sum or in installments during the duration of the policy.