What is insurance premium?

[Nightmare]

The insurance premium is simply the amount or sum of the money you have to pay to an insurance company for the sake of your insurance policy. The insurance history where you live, and some other factors that are been used and also included during the calculation to determine or know your insurance premium price or how much it really cost.

There's a need for you to know what the insurance premium really means and all about in order for you to know the actual amount you need to pay for the insurance policy.
Sometimes, purchasing or getting an insurance isn't actually enough, as it is important for you to know your insurance policy.
In some cases, you might get cheated if you don't really know your insurance premium.
I myself got cheated the first time I was buying an insurance with a company, all because I have no idea or knowledge on what insurance premium is all about and entails.
The insurance agent told me that it will cost me $98 to get a travel insurance and then said extra $50 for insurance premium. Unknowingly to me that the $50 was just a gain, and I wasn't suppose to pay for that.
So it's advisable for you to know what your insurance premium is, before buying an insurance.

 

[Benet]

Here are a few more details about insurance premiums you should know:

• The premium is the price of insurance coverage that an individual or business pays to an insurance company.
• The amount of the premium is based on the level of risk associated with insuring a particular individual or business. For example, insuring a young, healthy individual may be less risky and therefore less expensive than insuring an older individual with pre-existing health conditions.
• Premiums are typically paid on a regular basis, such as monthly or annually.
• In addition to the level of risk, other factors that can affect the amount of the premium include the type of insurance, the amount of coverage, and the length of the policy term.
• Some insurance policies allow the premium to be adjusted based on changes in the risk profile of the insured individual or business. For example, if an individual starts a new job that is more risky, their life insurance premium may increase.
• Insurance premiums are an important source of revenue for insurance companies, as they use the premiums collected to pay for claims made by policyholders.

 

[Bisolami]

Here are a few more details about insurance premiums you should know:

• The premium is the price of insurance coverage that an individual or business pays to an insurance company.
• The amount of the premium is based on the level of risk associated with insuring a particular individual or business. For example, insuring a young, healthy individual may be less risky and therefore less expensive than insuring an older individual with pre-existing health conditions.
• Premiums are typically paid on a regular basis, such as monthly or annually.
• In addition to the level of risk, other factors that can affect the amount of the premium include the type of insurance, the amount of coverage, and the length of the policy term.
• Some insurance policies allow the premium to be adjusted based on changes in the risk profile of the insured individual or business. For example, if an individual starts a new job that is more risky, their life insurance premium may increase.
• Insurance premiums are an important source of revenue for insurance companies, as they use the premiums collected to pay for claims made by policyholders.

I'm glad that you mentioned that the premium is a benefit and revenue to the insurance companies. A lot of people always wonder how insurance companies make money because it is mostly believed that they will take care of your responsibilities when yo need them which is tee but they have forgotten that whatever they will help you with determines on your premium.

Also, I have seen people say that they pay money into insurance companies. There is no doubt about that. Truly, it is money but we all need to learn that the money is called premium.

Thanks for the lecture