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. 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.