What Is Insurance Premium? Best 7 Different Insurance Premiums.


Life Insurance Premium

Peoples are very much aware of the benefits of owning life insurance policy. For this reason, many peoples are buying life insurance policies. But, the premium is the main factor that they consider at the time of  buying the policy.

Insurance Premium
Insurance Premium

Premium is a certain amount of money that is paid to the insurance company to continue the life cover. The rate of premiums can change according to the type of life insurance plan. For instance, the term  premiums are lower, while money back premiums are very expensive. The premium rates also can vary from company to company for the policy with same type and coverage limit.

Premium cost is decided by the type and size of the insurance policy. The mortality charges, saving component and even sales and administration expenses are also consider for the premium cost.

Insurance companies offers various options to pay the premiums. They are annual, half annual, quarterly and monthly or even single payment for some policies. The annual premium paying option is a better to save money on your life insurance policy.

Low Insurance Premium

Insurance premium is generally an amount paid by an individual who owns a policy to the insurance company in monthly or annually mode. The policyholder pays the premium till his policy gets matured. The premium payment frequency may differ along with the coverage from one company to another. If a particular person wants an insurance for itself or for his beloved ones, he unwillingly search the best insurance plan plus with cheap premium option and with some added bonus on maturity, but for that he will search on the internet for websites which suits his needs and requirements.

Insurance Premium

Its nice thing that you actually care for yourself or for your dependents, but before getting one always go through every possible thing which you can like- the foremost thing is “comparators”!- compare your policy with other company’s plan. The main problem is that we don’t get insurance comparators very easily, even in an search engine box. There is whole lot of junk gathered around on the internet.

Normally insurance agents also advise you to compare the policy quotes with insurance companies which you feel is relevant for you. Even the agents too personally calculate your plans and guide you towards the best insurance plans.

The premium rates generally increased if the risk cover is increased of that person from the company.

The younger you are for life insurance, the less premium rate would be charged. And if you are an old person, higher premium rate would be charged-because the young age person lives long life and the older person life span is short.

Life Insurance Premium

Many life insurance companies are in the market that are offering list of life insurance policies. But, the main thing is that the premium, you always worry about it.

Usually, you pay the premium to purchase your life cover. The cost of premium is depends on the type and coverage of the policy. For instance, the term insurance plans are in lower rates compared to other  insurance plans like whole life plans, ulips, money back plans. The cost of life insurance policy also can vary from company to company for the same type and the same coverage.

Insurance Premium

The insurance companies offer various types of payment mode such as annual, half annual, quarterly and monthly or single premium. The annual premium payment mode is better option to save money than other regular payment modes. Even single premium can be a better option to save more on your life insurance policy.

Factors affecting premium for car insurance

There are various factors that affect the premium for car insurance. If an individual is highly associated with risk, he or she will have to pay more premium and vice versa. Out of many we have taken out the most common and important factors that affect your premium.

Males are considered to be more riskier drivers than women, but this trend is changing as the female drivers have increased

Vehicle Type:
A Mercedes or BMW car will cost more to insure than a cheap car.

Drivers between the age of 50 and 65 are basically considered to be the safest drivers. Risk is associated with the drivers that are aged between 20 and 25 years.

Marital Status:
A married person will have to pay less premium than a single person with an identical driving record.

Individuals living and driving in areas with little or no traffic are likely to spend less on insurance. You will have to pay more insurance if driving in congested cities or suburbs because areas with a lot of traffic tend to see more accidents.


You will have to pay less premium if you are educated as compared to a driver with an identical record like you.

Driving Rules:

Some insurance companies may penalize you for breaking the rules while driving for as many as five years from when the incident occurred.

Insurance Premium Related To Driving Record

Driving record is one of the most vital factor in calculating the premium for car/auto insurance. The premium for car/auto insurance will be less if you have a good driving record and more if you have a bad driving record. Theoretically driving record is inversely proportional to the premium for car/auto insurance. As a result of these it is better to have a good driving record rather that having a bad one. There are companies that have started to give rewards to good drivers and also punish bad drivers. Your premium for the policy may increase suddenly if you have met with an accident even if it is other driver’s fault.

A few years of safe and smooth driving may remove the accidents that you already have on your driving record and benefit you as a good driver. The biggest advantage of driving record is a decrement in your insurance premium. If you continue this record your premium may even decrease further. You may be left with no increase in premium, if you have met with one accident during your policy is running.

But it is a crime to meet with two accidents in a short span of time as you may have to pay double premium as compared to what you are paying now. You may also earn discounts on travel cards, hotel and even cash back on your insurance each year without an accident, though these details may vary from insurer to insurer.

Paying Premium Annually

insurance is a major component of covering loss. Premium is a contract guaranteeing to pay for periodic money (premiums) against loss by fire, accident, death etc. Various insurance policies also insure health services. Premium are to pay in different mode like Annually/Yearly, Half Yearly, Quarterly, Monthly.

Paying premium annually can help you save money. If you are in process of finalizing investments in insurance policies as the financial year is at the end. If yes then before submitting the form check the mode of premium – monthly, quarterly, half yearly, yearly that you will like to pay. A small difference in paying premium annually or monthly can have an impact on the amount you pay.

Insurance Premium

For example :- You would pay Rs 11,718 for Jeevan Anand policy offered by the LIC (life insurance Corporation) if you choose yearly payment of premium. The Monthly premium will be (Rs 11,718 / 12) Which will be Rs 976. The Monthly premium will be a bit higher at Rs 1,057 it looks like a small difference but over a year it makes a difference of about Rs 1,000. This means you are paying 8.24% higher by selecting paying monthly and not yearly.

So it is preferred to pay the premium yearly not monthly to save money.

What is Insurance Premium?

Insurance premium is the payment that is made on any insurance policy that you have taken. This payment of premiums has to be paid by the insured person. insurance Premium that has to be paid basically depends upon the statistics rather than an individuals history. An Insurance Premium can be paid monthly, quarterly, half-yearly or even yearly whichever the individual likes. If the insurance premium is lower than the coverage automatically is lower or else higher.

Every company has its coverage limit and insurance premium may vary from company to company. The insurance premium is more if the person is associated with risk, for example a young car driver will have to pay higher insurance premium as compared to old driver. Statistically the young driver has more chances than old man to meet with an accident.

Many Insurance companies increase the insurance premium of smokers as compared to non-smokers because smokers have more chances of health hazards. Many insurance companies have provided an online calculator to calculate insurance premiums on their respective websites. While calculating premiums for insurance most insurance companies check whether the person is affected with diseases like HIV virus, Tuberculosis or any indications of hepatitis, diabetes and kidney problems.

The insurance premium may decrease for a smoker if he/she quits smoking. You may feel insurance premium as useless or waste of money but knowing that its importance will meet the expenses after an accident or death of insured person will relax you.

The Premium

Insurance, in term of law and economics, is form of risk management generally used to minimize the risk against major loss.

Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possibly devastating loss.

An insurer is a firm offering insurance and insured is a person purchasing it. The insurance rate is a provision used to determine the cost of it, which is undoubtedly known as premium.

Premium is an amount significantly charged for insurance coverage.

Return of premium life insurance is a kind of term insurance policy. The fact is that the insurance company ‘ policy returns the premiums you have paid for coverage over that fixed term period if coverage is never used.

For example, a $1million policy bought for $50000 for a period of over 30 years would result in the $50000 being refunded to the policyholder.

Experts view to the rate of return being less than in an ordinary investment, as well as the additional cost of the policy is less compared to basic term insurance policies. If the insured cancels the policy at any time, no money is refunded.

As this was the original concept, many current policies do allow exact refunds at some terms during the life of the policy.


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