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Premium

AnalyticsTrade Team
AnalyticsTrade Team Last updated on 26 Apr 2023

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Premium

Premium is a term used in the financial world to refer to the amount of money paid to purchase an insurance policy or other financial product. It is the amount of money that the policyholder pays to the insurance company in exchange for the coverage provided by the policy. Premiums are typically paid on a monthly, quarterly, or annual basis. The amount of the premium is determined by a variety of factors, including the type of policy, the amount of coverage, and the age and health of the policyholder.

History of the Term

The term โ€œpremiumโ€ has been used in the insurance industry since the late 19th century. It was originally used to refer to the amount of money paid to purchase a life insurance policy. Over time, the term has come to be used to refer to the amount of money paid for any type of insurance policy, including health, auto, and homeowners insurance.

Comparison Table

Type of Policy Premium
Life Insurance $50/month
Health Insurance $200/month
Auto Insurance $100/month
Homeowners Insurance $50/month

Summary

Premium is a term used in the financial world to refer to the amount of money paid to purchase an insurance policy or other financial product. The amount of the premium is determined by a variety of factors, including the type of policy, the amount of coverage, and the age and health of the policyholder. For more information about premiums, visit websites such as the Insurance Information Institute, the National Association of Insurance Commissioners, and the Centers for Medicare and Medicaid Services.

See Also

  • Insurance
  • Deductible
  • Co-Payment
  • Coverage
  • Risk
  • Underwriting
  • Actuarial Science
  • Premium Tax
  • Risk Management
  • Reinsurance

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