What Is Premium?
The amount of money the policyowner pays the insurance company to keep a life insurance policy in force, typically paid monthly, quarterly, or annually.
Premium across 6 exams
Premium appears on the following exams. Each defines it in the context candidates are tested on:
- Life Insurance
- The amount of money the policyowner pays the insurance company to keep a life insurance policy in force, typically paid monthly, quarterly, or annually.
- Property & Casualty
- The payment an insured makes to the insurer to keep coverage in force, usually paid monthly, quarterly, or annually. It is priced according to the risk assumed.
- Health Insurance
- The amount of money the policyowner pays to the insurer to keep a health insurance policy in force, typically on a monthly, quarterly, or annual basis.
- Personal Lines
- The amount of money the policyholder pays the insurer in exchange for coverage, usually billed monthly, quarterly, semi-annually, or annually. Premiums are set based on the insured's risk profile.
- Health-Only Insurance
- The amount of money the policyowner pays the insurer, on a set schedule, to keep coverage in force. Missing a premium payment can cause the policy to lapse.
- Limited Lines
- The amount of money the policyholder pays, typically on a recurring schedule, to keep an insurance policy in force.