Whats An Insurance Premium

What is an insurance premium.

Whats an insurance premium. Knowing your insurance before you buy it is very important. Insurance premiums are paid for policies that cover healthcare auto home and life insurance. 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. An insurance premium is the monthly or annual payment you make to an insurance company to keep your policy active.

View complete definition meaning and calculate insurance premium on hdfc life. Your insurance history where you live and other factors are used as part of the calculation to determine the insurance premium price. Premiums are required for every type of insurance including health disability. People pay these rates annually or in smaller payments over.

You enter into a contract with an insurance company that guarantees payment in case of damage or loss and for this you agree to pay them a certain smaller amount of money. Insurance premiums will vary depending on the type of coverage you are seeking. The sum a person pays in premiums also referred to as the rate is determined by several factors including age health and the area a person lives in. Your car insurance premium is the amount you pay your insurance company on a regular basis often every month or every six months in exchange for insurance coverage.

In a nutshell an insurance premium is the payment or installment you agree to pay a company in order to have insurance. Insurance is a means of protection from financial loss. Hdfc life helps you understand what is insurance premium and how it is calculated. Group term life insurance policy where employees are the intended beneficiaries either because the employees are the named beneficiaries or there is a contractual obligation for the employer to pass the payout to the employees or their next of kin.

The insurance premium is the amount of money paid to the insurance company for the insurance policy you are purchasing. Unlike health insurance which involves premiums deductibles copays and other out of pocket expenses the cost of homeowners insurance is a little more cut and dry you only pay premiums to keep your coverage active and a policy deductible on insurance claims. An insurance premium is the amount of money an individual or business must pay for an insurance policy. An insurance premium is the amount of money charged by a company for active coverage.

It is a form of risk management primarily used to hedge against the risk of a contingent or uncertain loss.