Insurance

What is a Premium?

Premium

[pree-mee-uh m]

noun

1.

A Premium is the payment made to the insurance company, either monthly or in a lump sum, to purchase insurance. The Premium does not include other costs like copays or deductibles.

Have A Question About This Topic?

Thank you! Oops!

Related Content

Your Emergency Fund: How Much Is Enough?

Your Emergency Fund: How Much Is Enough?

Having an emergency fund may help alleviate the stress and worry associated with a financial crisis.

Split Annuity Strategy

Split Annuity Strategy

Here's one strategy that combines two different annuities to generate income and rebuild principal.

Life and Death of a Twenty Dollar Bill

Life and Death of a Twenty Dollar Bill

How long does a $20 bill last?