Jan pays $70 each month for her auto insurance policy. This regular payment is called a:
Answers
This regular payment per month is called monthly insurance premium.
An insurance premium is just the price you pay for insurance coverage during a given period of time.The insurance premium is income for the insurance company, once it is earned, and also represents a liability in that the insurer must provide coverage for claims being made against the policy. Failing to pay your premium for a given period of time may automatically cancel the insurance.
Based on the frequency of payments premium is divided into 3 parts:
1. Monthly premium: payment is made every month.
2. Half yearly premium: payment is made every six months.
3. Annual premium: payment is made once a year.
This customary installment every month is called monthly insurance premium.
A protection premium is the measure of cash that an individual or business must pay for a protection strategy. The protection premium is pay for the insurance agency, when it is earned, and furthermore speaks to an obligation in that the safety net provider must give inclusion to claims being made against the arrangement.
In a protection get, the hazard is exchanged from the guaranteed to the safety net provider. For going out on a limb, the back up plan charges a sum called the premium. The premium is an element of various factors like age, sort of work, medicinal conditions, and so on. The statisticians are depended with the duty of determining the right premium of a guaranteed. The premium paying recurrence can be unique. It tends to be paid in month to month, quarterly, semiannually, yearly or in a solitary premium.