MANAGEMENT

Detailed explanation-1: -An insurance premium is the amount you pay for an insurance policy. Simply put, premiums are what you pay insurance companies in exchange for coverage. Therefore, when you hear “insurance premium, ” think “insurance price.” You typically pay premiums monthly, semiannually or annually, depending on the policy.

Detailed explanation-2: -Simply put, “premium” means a payment. It’s the amount of money you pay your life insurance company in exchange for your coverage. The payout itself (called a death benefit) is the amount of money the life insurance company would pay your beneficiaries if you, the policy owner, died while covered by the policy.

Detailed explanation-3: -Premium in life insurance refers to the amount that a policyholder will pay either in a lump sum or regularly to purchase the insurance policy. It is also known as policy premium. The insurers normally provide monthly or annual premium amounts for the life insurance plans.