Answer:
a monthly payment that ensures insurance coverage for a person.
Explanation:
An insurance premium paid on an insurance policy is referred to as a periodic payment made at regular intervals or in lump sum in order to insure the mishappening of an event against which such insurance has been taken.
An amount, which is paid against the insurance of claim for mishappening of a particular event, is known as an insurance premium. The frequency of payment of an insurance premium is fixed and predetermined. Non-payment of insurance premium may lead to cancellation of policy.
An insurance premium is like a small proportion of the insured amount made against such event. It is worth to be noted that the payment of insurance premium paid can never be more than the actual amount insured by a person.
Therefore, the significance of an insurance premium has been aforementioned.
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