ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An insurance premium equates to the money that is paid by any person or company/business for availing of an insurance policy. The insurance premium amount is influenced by multiple factors and varies from one payee to another.

Detailed explanation-2: -An insurance premium is the amount of money an individual or business pays for an insurance policy. Insurance premiums are paid for policies that cover healthcare, auto, home, and life insurance. Once earned, the premium is income for the insurance company.

Detailed explanation-3: -Premium-The amount paid by an insured to an insurance company to obtain or maintain an insurance policy.

Detailed explanation-4: -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-5: -Life insurance premium is classified as a personal account, since the insurance premium paid represents the amount paid for an individual. Was this answer helpful?