Definition & Meaning:

Basically, it is the name which insurance companies call the 'payment' that a customer has to pay so to be covered by an insurance policy.

With most insurance policies, you have to pay a 'insurance premium' to the insurance company every month, but for some policies you may only have to pay it every half year or year.

The quantity of money you pay in the 'premium' depends on a lot of factors (the risk, what is covered and for how much, the insurance company, the type of insurance policy etc...).


Also Called:

Premium.

Related Vocabulary:

Grace Period.

To learn more vocabulary connected to insurance, you can do a free online exercise on insurance policy vocabulary.