The insurance premium is the amount you pay monthly to be covered by your insurance. An insurance premium is the amount of money an individual or a company pays for an insurance policy. The premium is set at an individual level based on risk. If you are paying your monthly insurance premium, you are also eligible for doing claims, and will get compensated if something covered by your insurance happens.
Insurance premiums are paid for insurance that covers accident, health, car, home, and life insurance. After earning, the premium is income for the insurance company. It also represents a liability, as the insurer must provide coverage for claims against the insurance. Failure to pay the premium from the individual or business may result in the policy being revoked.
What is gross premium?
The gross premium is the total cost that the person who has the insurance pays to the insurer according to the insurance contract they have. If the person has several insurances, the gross premium is the total amount it then pays for all the insurance it has.