Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
A premium is the amount you pay to the insurance company (generally on a monthly basis - depending on the kind of insurance, you may desire to pay quarterly, semi-annually, or annually) in exchange for coverage under a given policy.
When a certain type of claim is made, the insurance company is going to pay the claim instead of you up to the defined amounts as stated inside the policy - for health insurance, the policy may only state the carrier is going to cover a percentage of the claim and you would pay the difference.
Great question! In almost every case, your premium payment should be agreed upon before you sign for the policy. There are some cases where the companies underwriters need some time to investigate an determine whether you will qualify, and what the premium will be, but in most cases you should have a very good idea up front what you are paying, and what your coverage will consist of. If your agent doesn't make these things clear to you, politely decline, and go get another agent, one who will make everything understandable. If you would like help, please feel free to contact me, okay? Thanks for asking!
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When a certain type of claim is made, the insurance company is going to pay the claim instead of you up to the defined amounts as stated inside the policy - for health insurance, the policy may only state the carrier is going to cover a percentage of the claim and you would pay the difference.