Definition of Insurance premium:
An insurance premium is the amount of money an individual or business pays for an insurance policy. Insurance premiums are paid for policies that cover healthcare, auto, home, life, and others.
Financial cost of obtaining an insurance cover, paid as a lump sum or in installments during the duration of the policy. 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.
An amount to be paid for a contract of insurance.
Once earned, the premium is income for the insurance company. It also represents a liability, as the insurer must provide coverage for claims being made against the policy. Failure to pay the premium may result in the cancellation of the policy.
How to use Insurance premium in a sentence?
- I wanted to buy insurance with this company because the salesman told me they had the best insurance premium and I believed him.
- Insurance premiums may increase after the policy period ends.
- Insurance premiums are paid for policies that cover healthcare, auto, home, life, and others.
- The insurance premium was too high for our company. We want to protect against losses but not at that high cost.
- An insurance premium is the amount of money an individual or business must pay for an insurance policy.
- Getting a good insurance premium can help to alleviate many of your concerns of potential bankruptcy due to a disaster.
Meaning of Insurance premium & Insurance premium Definition