What is an insurance premium?

An insurance premium is a payment made to an insurance company in order for an individual or business to purchase an insurance plan. In Indiana, insurance premiums are payments made periodically for the purpose of covering the insured person for any losses, damages, or costs that are a result of a claim against the policyholder. In other words, the premium is the money that the policyholder pays to the insurance company to cover them in the event of an unforeseen incident that results in a claim. Insurance premiums are typically billed on either a monthly or annual basis, depending on the type of policy. Insurance premiums are calculated by the insurance company based on a variety of factors including age, gender, medical history, location, and the type of coverage being sought. The amount of the premium will also depend on the amount of coverage being requested. For example, if you need higher levels of coverage, such as for medical bills, you may need to pay a larger premium in order to get it. Paying a larger premium will also often result in lower out-of-pocket costs and lower deductibles for the policyholder.

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What is an insurance premium?

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