Insurance premium is a certain amount of money charged by insurance companies. This may be paid quarterly or as prescribed by the insurance company. When an insurance policy is taken by a customer for the safety of his health, property, car or any precious thing, insurance company will assess the value and will fix the insurance policy.
Once a customer agrees to take the insurance policy, company will provide a particular amount in the form of insurance premium that should be paid by the customer for a certain period of time. The duration of premium may be five years, ten years or may be more. This is once again dependent on the decision of customer. There are different insurance quotes given by insurance brokers or agents. Most of the time, customers will choose the lowest quoted price for better bargain.
Some of the important points to be noted while considering insurance premiums is to have self-assessment about financial status. Low insurance premium is always easy to pay whereas high insurance premium will be a burden for low income customers. Depending on the regular income, insurance policy should be selected which may span from a five year term to ten year term. This yields quick maturity and also ensures huge sums of money.
What is most benefiting here is that, premiums paid in small amounts, over a period of time, enable the investor to receive a bulk amount. That is in case of emergency requirement of funds, policy holder can always approach the insurance company to pay the sum insured against a particular person or property.
This way, insurance premiums are periodical payments made to the insurance companies against certain insurance policy insured amount. When premiums are paid regularly, customer can negotiate with the insurance company at the time of withdrawal in case of urgent need of funds.
