Insurance Premium is the payment made by the policy holder to the insurance company on a regular time span. This payment has to be made by the insured person till the maturity of the insurance. Insurance Premium may vary from company to company along with the coverage limit. Thus, while selecting an insurance policy one should be very careful and should compare all the possible options through online website services. The customers are advised to compare the quotes offered by the different insurance companies and select from the wide variety of options available to them.
Insurance brokers play an important role in finding the appropriate insurance for the customer by assessing and titrating the different insurances available in the market. The brokers or agents calculate the premiums on the basis of the requirement particulars of the customer. The lowest quote offered by the insurance company is considered to be the most suitable one for the customer.
The above mentioned work of insurance premium calculation now-a-days are also done by the specialized websites doing the searching, comparing and calculating the insurance premium on behalf of the customers.
The insurance premium generally increases with the increase in the risk perception of the company about that person.
* In case of medical insurance or mediclaim, the cost of premium is more for the smokers than the non-smokers because the insurance company considers that the smoker possesses a greater risk of health hazard than the non-smoker. Hence the cost of premium is directly proportional to the risk associated.
* In case of the car insurance, the cost of premium is generally higher than a older one because the insurance company considers that the younger driver is more prone to accident than the latter.
* In case of Life Insurance, the insurance company considers the aged person to be more prone to death. Hence it charges a higher premium than from him. But when it comes to a younger person seeking life insurance, then the premium charged from him is less. The reason behind it is that in normal conditions a younger person stands more chance in living a longer life span.