Premium

Premium An insurance premium is a periodic payment made to an insurance company in exchange for coverage against a specific risk. The amount of the premium is determined by a number of factors, including the type of insurance, the amount of coverage desired, the insured's age, health, and driving record, and the insurance company's risk assessment Premiums can paid using different modes in insurance base on the agreement between the insurer and the insured: -Lump sum: Pay the total amount before the insurance coverage starts. -Monthly: Monthly premiums are paid monthly. -Quarterly: Quarterly premiums are paid quarterly (4 times a year) -Semi-annually: These premiums are paid twice a year and are way cheaper than monthly premiums. Failure to pay the premium on the part of the individual or the business may result in the cancellation of the policy and a loss of coverage. The question is how premiums are being determined? This is duty of actuaries who work for insurance companies, they determine the particular risks associated with a policy. They look at things like how likely a disaster or accident is, and the likelihood of a claim being filed, and how much the company will be on the hook for paying out if a claim is filed. They put this information into a chart called an actuary table that provides an equivalent amount to the risk exposure called premium. There are a few things you can do to lower your insurance premiums: shop around for quotes from multiple insurance companies, increase your deductible, take advantage of discounts, bundle your insurance policies. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful