Insurance Premium Meaning and Definition

What is an insurance premium? Know the meaning and definition of insurance premium today plus tips on how to save money when buying health and life insurance. In insurance industry, it is important especially to those who sell insurance the exact meaning and definition of insurance premium.

Today, here at Insurance-Premium.Net, we have to discuss the meaning and definition of this “words”. A commonly used words when buying and when an insurance agent is selling an insurance.

What is an Insurance Premium?

Insurance premium is the amount of money that a policy holder should pay. Insurance premium can be paid monthly, quarterly or even per year. You can’t have an insurance policy unless you pay for insurance premium. If your insurance policy is expired and you didn’t renew it because you have no money to pay for the premium and something bad happened to you like accident, you can’t receive any benefits or you can’t file a claim.

This mean, you pay the premiums and you will get the policy. Once you have the policy, you are certified insured. As simple as that.

Investors Pay for Insurance Premiums, Too.

In investing, one of the main reason why we need to insure ourselves (actually not just ourselves, but our properties) is to make sure that we will receive some amount of money as a compensation and to use that money to recover from financial disaster.

As we explained awhile ago in Insurance-Premium.Net previous topics, an investor won’t pull out his funds just to pay for the medical matters or hospitalization. He should have emergency funds and of course health insurance and life insurance.

Save Money When Buying Insurance

In order for you to save money when buying an insurance, you have to shop and compare the insurance premium of different insurance companies. Ask for an insurance quote. Buy only the type of insurance you need, if an agent ask you for a rider, buy it if it is needed.

What do you think about this topic? Is this article useful? Is this complete enough to explain to our readers what is an insurance premium all about? Kindly share your thoughts and add some meaning and definition of the word “insurance premium”. Share this page with your friends. Stay tuned to this blog and learned more about insurance.