The Definition of Insurance Premiums
All types of insurance The insured must pay the insurance premium every month or every six months. Depending on the conditions agreed with the insurance company In this part, many people are confused about what the insurance premium actually means.
Insurance premium is the amount of money that the insured must pay to the insurance company in order to buy the coverage that will be received from the life insurance that bought the insurance. However, the insurance premium can be compared to the price of goods and consumables. In general product sales The selling price of that product is equal to the cost price plus the profit of the product. The same is true for the purchase price of life insurance. The amount of insurance premiums that the insurance company collects from the insured must be sufficient to cover the cost of operating life insurance of the company. Plus the company's profit Which will depend on the operational efficiency and return on investment of the insurance company.
Therefore, the insurance premiums that the insurance company has offered to the general public interested in that insurance. Must be approved by the registrar To consider the accuracy according to actuarial calculations By not taking advantage of the insurance buyers.
In summary, the insurance premium is the money that must be paid in the first step of purchasing insurance. But after that Therefore will send insurance premiums every month or every six months Depends on the conditions agreed with the insurance company When the policy contract expires The insurance company will refund the buyer with the interest specified in each type of insurance policy. But if the buyer of the insurance has canceled the contract early or in the first year Will not be able to receive a refund.
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