Premium
Also known as: Insurance Cost, Policy Premium
The amount paid periodically to keep an insurance policy active and in force.
Detailed Explanation
Premium is the cost of insurance coverage paid by the policyholder to the insurance company. It can be paid annually, half-yearly, quarterly, or monthly. Premium amount depends on factors like age, health condition, sum assured, policy term, and type of coverage. Life insurance premiums qualify for tax deduction under Section 80C.
Related Calculators
Related Terms
Sum Assured
The guaranteed amount paid by insurance company to beneficiaries upon policyholder's death.
80D
Section 80D provides tax deduction for health insurance premiums paid for self, family, and parents.
Term Insurance
Pure life insurance providing high coverage at low cost with no investment component.
Health Insurance
Insurance coverage that pays for medical expenses incurred due to illness, accident, or hospitalization.