What is premium payment?
Asked by: Mrs. Sonya Braun PhD | Last update: December 20, 2025Score: 4.3/5 (60 votes)
What does premium payment mean?
To pay a premium generally means to pay above the going rate for something, because of some perceived added value or due to supply and demand imbalances. To pay a premium may also refer more narrowly to making payments for an insurance policy or options contract.
What is the premium payment method?
A premium is the amount of money that an insurance policyholder pays to the insurer in exchange for coverage. There are several different modes of premium payment. The most common payment modes are monthly, quarterly, semi-annual, and annual. Out of all of these, monthly is the most common.
What is the definition of premium pay?
In California, premium pay consists of a worker's hourly rate, or straight time rate, in addition to nondiscretionary wages. These wages include attendance bonuses, incentive bonuses, hiring bonuses, and performance bonuses.
What does premium payment term mean?
Definition of Premium Payment Term
The premium payment term in insurance refers to the duration or period during which the policyholder is required to make premium payments for their insurance policy. It specifies the timeframe over which the premiums are to be paid to keep the policy in force and active.
How insurance premiums and deductibles work
Is a premium paid monthly?
An insurance premium is the amount you pay each month (or each year) to keep your insurance policy active. Your premium amount is determined by many factors, including risk, coverage amount and more – depending on the type of insurance you have. This does not apply to all types of life insurance.
What is the meaning of actual premium payment?
Actual Premium means, with respect to an Identified Policy, an amount equal to the premium actually paid by the Seller from the applicable Purchase Confirmation Date until the applicable Change Date.
Why is premium paid?
Definition: Premium is an amount paid periodically to the insurer by the insured for covering his risk. Description: In an insurance contract, the risk is transferred from the insured to the insurer. For taking this risk, the insurer charges an amount called the premium.
How to get premium pay?
Work on a rest day falling on a special non-working day (or vice-versa) If there is work performed on a rest day which is also a special non-working day (or vice-versa), a covered employee is entitled to a premium pay of 30% of his basic wage or a total of 150%.
What is premium paid term?
Definition: Premium paying term is the total number of years for the policy holder to pay the premium. Definition: Policy term is normally equal to the premium paying term.
What is premium transaction?
Transaction Premium means an amount that is equal to the difference in value between the Pre-Agreed Price and the Actual Sale Price.
How many times do you pay a premium?
Premiums are usually paid either monthly, every six months, or annually and are determined by various factors, including your driving record, age, and the coverages you select as part of your policy.
What is the premium pay plan?
Premium pay is additional pay provided to employees for working certain types of hours or under certain types of conditions, as provided under 5 U.S.C. chapter 55, subchapter V and 5 CFR part 550, subpart A. Premium pay paid under title 5 is subject to certain biweekly or annual pay limitations.
Why do people pay premium?
Key Takeaways
An insurance premium is the amount of money an individual or business must pay for insurance protection. Insurance premiums are paid for policies that cover healthcare, auto, home, life insurance, liability, and other types of protection.
What is an example of a premium?
The monthly premium for your health insurance is deducted from your paycheck. Many customers are willing to pay a premium for organic vegetables. The offer applies to standard suite styles and varies for the themed and premium suites.
How do you calculate premium pay?
Multiply the regular rate of pay by 0.5 to get the overtime premium rate. Multiply the overtime premium rate by the number of overtime hours worked. Add the overtime premium pay to the piece rate pay to get the employee's total pay.
What is a premium payment?
The amount you pay for your health insurance every month. In addition to your premium, you usually have to pay other costs for your health care, including a deductible, copayments, and coinsurance.
What is an example of premium pay?
Premium Pay - GS employees - additional pay authorized for overtime, night pay differential, holiday worked, Sunday work, standby duty, administratively uncontrollable overtime work or availability duty.
What is premium pay time?
Premium pay is paid for work done during less than desirable hours or work done on special days. Overtime pay is paid when an employee works beyond the usual 40-hour workweek.
Is premium good or bad?
Premium gas can increase fuel efficiency, potentially giving better gas mileage for longer while decreasing emissions, if you have a car designed to run on premium gas.
Why premium is charged?
The insurance premium is what insurance companies make use of when it comes to ensuring coverage for all liabilities linked to the policy. The premium may also be invested by the insurance company in securities for earning returns and covering some of the costs tied to the coverage.
Why would a company pay a premium?
Typically, an acquiring company will pay an acquisition premium to close a deal and ward off competition. An acquisition premium might be paid, too, if the acquirer believes that the synergy created from the acquisition will be greater than the total cost of acquiring the target company.
What is a 6 month premium?
A 6-month premium is the amount you owe your car insurance for six months of coverage. You can usually pay your car insurance monthly or every six months, but some insurers may offer a small discount for paying your premium in full.
What is regular premium payment?
In return, you need to pay a specified sum to the insurer, called the premium. You may need to pay the premiums regularly at specified intervals over a definite period. Insurance plans with such periodic payments are called regular premium plans. You can also pay the entire sum at once with the single premium option.
What does it mean to get paid a premium?
The term “premium” refers to the additional compensation offered to the employees when requested to work on certain days or less desirable conditions. This premium pay is intended to reward employees for going above and beyond their associated work hours under specific circumstances.