MANAGEMENT

Detailed explanation-1: -What is Premium in a Life Insurance Policy? 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.

Detailed explanation-2: -A premium is the price you pay to buy an insurance policy. Premiums are your regular payments for many common insurance policies, including life, auto, business, homeowners and renters. If you fail to pay your premiums, you risk having your policy canceled.

Detailed explanation-3: -The insurance premium is the sum of money an individual or business must pay for an insurance policy. The amount of insurance premium that is paid out by the policyholder to the insurance company depends on a variety of factors.

Detailed explanation-4: -Broadly speaking, a premium is a price paid for above and beyond some basic or intrinsic value. The word “premium” is derived from the Latin praemium, where it meant “reward” or “prize". “At a premium” is thus meant to describe that an asset as being priced higher than it is actually worth.

Detailed explanation-5: -The definition of premium is something or someone of greater or superior quality. An example of premium used as an adjective is the phrase premium gasoline which means a gasoline with a higher octane rating.