Definition 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.

Definition premium insurance. The premium is a function of a number of variables like age type of employment medical conditions etc. The loss constant helps protect insurers from losses associated. The insurance premium is the amount of money paid to the insurance company for the insurance policy you are purchasing. Most insurance is provided by private corporations but some is provided by the government.

An amount added to an insurance policy with a low premium designed to cover higher than expected loss experiences. Premium is an amount paid periodically to the insurer by the insured for covering his risk. Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent or uncertain loss.

Financial cost of obtaining an insurance cover paid as a lump sum or in installments during the duration of the policy. By paying premiums the applicant is providing considerations to the insurer in return for protection against a loss suffered by them or another party or entity. Your insurance history where you live and other factors are used as part of the calculation to determine the insurance premium price. 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.

An insurance premium is the monthly or annual payment you make to an insurance company to keep your policy active. 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. An entity which provides insurance is known as an insurer insurance company insurance carrier or underwriter a person or entity who buys insurance is known as an insured or as a policyholder.

Premiums are required for every type of insurance including health disability. Insurance companies purchase reinsurance to hedge their risks. A reinsurance premium is an amount of money that an insurance company pays to a reinsurance company to receive a specific amount of reinsurance coverage over a specified period of time.