Insurance Premium
DEFINITION
An insurance premium is the amount paid to keep an insurance policy active. It is usually paid monthly, quarterly, or semi-annually, depending on the policy. If the premium is not paid on time, the policy may be cancelled or late fees may apply.
ELI5
An insurance premium is the money you pay to keep your insurance working. If you stop paying it, the cover may end.
Other related terms
Mortgage Servicing Ratio (MSR)
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Non-participating (non-par) Life Insurance
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General Insurance
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Investment-linked Life Insurance
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