ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Definition: Premium is an amount paid periodically to the insurer by the insured for covering his risk. Description: In an insurance contract, the risk is transferred from the insured to the insurer. For taking this risk, the insurer charges an amount called the premium.

Detailed explanation-2: -Insurance coverage refers to the amount of risk or liability that is covered for an individual or entity by way of insurance services. The most common types of insurance coverage include auto insurance, life insurance and homeowners insurance.

Detailed explanation-3: -Total Premium Amount means the premium price per unit of the Underlying Securities multiplied by the total quantity of Underlying Securities subject to an Option.

Detailed explanation-4: -A life insurance premium is the amount of money paid to your life insurance company in exchange for your life insurance coverage. As long as your premiums are paid on time, your coverage will remain in place for the duration of your policy (or until your passing).

Detailed explanation-5: -For example, if you pay $212 per month to keep your car insured, your yearly insurance premium would be $2, 544. If you purchased a six-month policy, your insurance premium would be $1, 272. Insurance premiums usually have a base calculation.