Premium is the amount paid by a policyholder to an insurance company to keep an insurance policy active and receive coverage benefits.
A Premium is the cost of insurance coverage. It can be paid monthly, quarterly, or annually depending on the policy terms. If the premium is not paid on time, the policy may lapse (expire) and coverage will stop.
Premiums are calculated based on factors like:
Insurance companies operate under regulations of the :contentReference[oaicite:0]{index=0}.
"If you buy a health insurance policy with a premium of ₹10,000 per year, you must pay this amount annually to keep the coverage active."