Key HighlightsWhat Determines An Insurance Premium?Types of Insurance PremiumsConclusionFAQsRecommended ArticlesQ1. What is the function of an insurance premium?Answer: A policyholder must pay an insurance premium to obtain a policy and the preferred coverage. These payments are pooled together by the insurance company and used to settle any insurance claims. It also serves as an income for the insurance company.Q2. What factors influence insurance premiums?Answer:Depending on the plan, companies evaluate many criteria before determining the Premium. It comprises age, health history, lifestyle, coverage, deductibles, and more. For example, for a health policy, the company might a-sess the insured’s age, health conditions, pr…See more on educba.com
Published: Nov 7, 2022in·sur·ance pre·mium✕PlayNOUN
insurance premium (noun) ·
insurance premiums (plural noun) an amount to be paid for a contract of insurance: "insurance premiums are a significant operating expense"More about insurance premiumData from Oxford LanguagesSee more definitionNew content will be added above the current area of focus upon selectionSee lessPeople also askWhat does insurance premium mean and how does it work?What does insurance premium mean and how does it work?The
insurance premium is the amount that the insured person pays regularly to pay for his own risks. In
insurance contracts, risk is transferred from the insured to the
insurance company. To bear these risks,
insurance companies charge an amount called
premiums.
Premiums are a function of many variables, such as age, type of
work, medical ...What Is
Insurance Premium And How Does Insurance Work?
India’s deadliest plane crash in over a decade is poised to send shockwaves through the aviation insurance sector, potentially resulting in one of the nation’s most expensive claims, estimated at approximately $475 million.
