What are the different types of premium?

• 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.

• Term insurance.
• Term insurance with return of premium.
• Unit Linked Insurance Plans.
• Endowment plans.
• Moneyback policy.
• Whole life insurance.
• Group life insurance.
• Child Insurance Plans.

Why is it called a premium?

Broadly speaking, a premium is a price paid for above and beyond some basic or intrinsic value. Relatedly, it is the price paid for protection from a loss, hazard, or harm (e.g., insurance or options contracts). The word "premium" is derived from the Latin praemium, where it meant "reward" or "prize."

What premium means in insurance?

An insurance premium is the amount of money an individual or business pays for an insurance policy. ... Once earned, the premium is income for the insurance company. It also represents a liability, as the insurer must provide coverage for claims being made against the policy.

How do you describe a premium?

2 : an amount above the regular or stated price There is a premium for overnight delivery. 4 : a high or extra value He put a premium on accuracy.

What are examples of premium pricing?

Examples of premium pricing

Designer clothes. Some manufacturers will deliberately set a high price for designer clothes hoping that the high price will create an impression of a luxury good with better quality. Apple iPhone, iPad products. Apple iPhones are generally more expensive than similar competitors.

What means total premium?

Total Premium means the Single Premium or the sum of all Limited Premiums/Regular Premiums paid till date, as applicable, excluding any Extra Premium, and GST and cess, if any. Sample 1.

What are the 3 main types of insurance?

What are 4 types of whole life policies?

What are the 7 types of life insurance?

Is Marine a insurance?

Marine Insurance is a type of insurance policy that provides coverage against any damage/loss caused to cargo vessels, ships, terminals, etc. in which the goods are transported from one point of origin to another.

What is your gross premium?

Definition of 'gross premium'

A gross premium is the total premium of an insurance contract before brokerage or discounts have been deducted. ... The gross premium is the total premium paid by the policy owner, and generally consists of the net premium plus the expense of operation minus interest.

What is subsequent premium?

Subsequent Premiums (SUB) transmits subsequent premium information from distributors to insurance carriers. The service provides an efficient, straight-through process for validating, formatting, and submitting subsequent premium payments while incorporating same-day money settlement.

What are the different types of pricing?

What are the 5 pricing strategies?

What are premium products?

Premium products are typically defined as products that cost 20% more than the average category price. ... New products that are considered rare or scarce make a big impact in the marketplace, as do products that integrate quality design.

What is the opposite to premium?

premium. Antonyms: penalty, fine, amercement, mulct, forfeit, depreciation. Synonyms: reward, guerdon, encouragement, douceur, enhancement, bribe, recompense, bonus, prize, bounty.

Is premium higher than deluxe?

As adjectives the difference between premium and deluxe

is that premium is superior in quality; higher in price or value while deluxe is being very fine in quality or luxurious.

What are some synonyms for premium?

What is renewal premium?

Definition: Renewal premiums are the subsequent premiums that are paid by the insured to the insurer in order to keep the policy in operation and avail the benefits of the policy accordingly. ... The renewal premiums are paid after the initial premium and are indispensable for the continuation of the policy.

What is rating and premium?

Rating — determining the amount of premium to be paid to insure or reinsure a risk. Guaranteed cost rates are fixed during the policy period. Loss sensitive rates are those that can be adjusted after the end of a policy period, based upon the insured's actual loss experience.

What is the difference between insurance rate and premium?

A rate is the price per unit of insurance for each exposure unit, which is a unit of liability or property with similar characteristics. ... The insurance premium is the rate multiplied by the number of units of protection purchased.