Definition of Insurance Premium
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Deposit premium - A Deposit Premium is a type of insurance premium where the insured deposits money with the insurer to obtain perpetual insurance against the risk of a loss. Deposit premiums are unique from regular insurance premiums, because they are refundable should either the insured or the insurer chose to terminate the perpetual insurance.
Self insurance - Self insurance is a risk management method whereby an eligible risk is retained, but a calculated amount of money is set aside to compensate for the potential future loss. The amount is calculated using actuarial and insurance information and the law of large numbers so that the amount set aside (similar to an insurance premium) is enough to cover the future uncertain loss.
Life insurance - Life insurance (Life Assurance in British English) is a type of insurance. As in all insurance, the insured transfers a risk to the insurer, receiving a policy and paying a premium in exchange.
Universal life insurance - Universal Life (UL) is a type of permanent life insurance based on a cash value. That is, the policy is established with the insurer where premium payments above the cost of insurance are credited to the cash value.
definitionofinsurancepremium
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