You have certainly heard people saying “My insurance premium is too high”. Getting a decent insurance premium can be hard if you are not working with the right broker.
But what is the definition of insurance premium, and what does it mean?
The answer is simple. An insurance premium is the financial cost of obtaining insurance cover, which is paid in the form of a lump sum or installments during the policy. In other words, an insurance premium is the amount of money the insurance company charges you for your active insurance coverage.
In the case the insurance premium is not paid, the policy is considered to be void and there are no claims honored against it. This automatically cancels the insurance policy which within a certain period afterwards, may be restored (depending on the insurance company and its rules).
Now that you know what an insurance premium is, you may be asking yourself.. What does the insurance premium cover?
The insurance premium covers the many cost associated with the insurance policy as well as the services provided for the type of protection it holds. There are many differences between insurance policies:
What do you think?
The Base Team
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