Definition Series for the Insurance Illiterate: Premiums

Definition of a Premium

// an amount of money paid to an insurance company in return for an insurance policy.

It’s a money transaction. A “buy this get that” situation.

EXAMPLE OF PREMIUM

“Hi, I’m Steve. I’m kind of new to this. I was getting a quote on my home and it said my premium is $158.00 per month. What does that mean?”

INSURELY SAYS…

This means that Steve’s premium (amount he pays for coverage) is $158.00 per month for the entire policy term (1 year). Hot Tip: If you can afford to pay the entire premium, you will usually receive a small discount or often forgo financing fees, so make sure you check!

At Insurely, you can use a debit or credit card to make monthly payments, letting you rack up those points! CHA-CHING!

Looking to shop around? Head over to Insurely and get coverage today!