Quick Definition

An insurance premium is the amount of money an individual or business pays for an insurance policy.

Examples

• 1A homeowner pays a monthly premium of $100 for home insurance to cover potential damages or losses.
• 2A car owner pays an annual premium of $1200 for auto insurance to protect against accidents, theft, and other liabilities.
• 3A business pays a quarterly premium of $5000 for liability insurance to safeguard against claims of negligence or harm caused to others.

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