Definition

Noun: 1. A regular payment made to an insurance company in exchange for coverage: This is the amount of money, typically paid monthly, quarterly, or annually, that a policyholder is required to pay to keep an insurance policy active. The premium is the cost of the insurance.

Usage

The term "insurance premium" refers specifically to the periodic payment for an insurance contract. It is a fixed, recurring cost associated with maintaining insurance coverage. - Paying your insurance premium on time is essential to avoid a lapse in coverage. - The insurance premium for comprehensive car coverage is higher than for basic liability.

Advanced Usage

• "to calculate an insurance premium": to determine the cost of an insurance policy based on risk factors.
  • Actuaries calculate insurance premiums using complex statistical models.
• "premium due date": the specific date by which an insurance premium payment must be made.
  • Mark your calendar for the premium due date to avoid late fees.

Variants and Related Words

• Premium (noun): When used alone in a financial or insurance context, it often means the same as "insurance premium."
  • Her life insurance premium increased this year.
• Policyholder (noun): The person or entity that owns the insurance policy and pays the premium.
• Underwriting (noun): The process an insurer uses to evaluate risk and set the premium amount.

Synonyms

• Insurance payment
• Policy premium
• Coverage cost

Related Phrases

• "to pay a premium": to make the required payment for insurance.
  • You must pay a premium every month for your health plan.
• "premium hike/increase": a rise in the cost of the insurance premium.
  • Drivers with accidents on their record often face a premium increase.

Noun

1. payment for insurance