Business

What is Insurance and Insurance premium?

Insurance

Insurance

What is Insurance and Insurance premium? Insurance is a risk transfer mechanism. It’s a method of shifting the responsibility for losses to the party who is a specialist for handling the risk by spreading it over a large number of people or firms

Insurance is a means of protection from financial loss. It’s a form of risk management primarily used against the risk of uncertain loss. Insurance is a system of protection against loss in which a number of individuals agree to pay certain sums of money, called premiums, to create a pool of money which will use the contribution of these individuals to pay the losses of the few caused by events such as fire, accidents, illness or death.

Insurance

Idea of Insurance

In previous centuries, the bottomry contract was used by money lenders to shift the risk from owners of ships to cargoes to themselves. If the ship or cargo was lost during the voyage .  The contractor pays the losses and If the voyage was successful then the bottomry loan contractor keeps it was high because it includes the amount of interest and risk. This bottomry loan sowed the seed of the insurance idea.

What Is the Insurance Premium?

The insurance premium is defined as the amount of money that the insurance company is going to charge you for an insurance policy you are getting. The insurance premium is the installments or cost of your insurance.

Insurance premiums calculation usually based on your personal information, location and other company determined information

The insurance premium is sometimes paid on a yearly basis, semi-annual basis, or, many companies today allow, monthly financing of the premium.

What Factors Determine the Premium?

There are three basic factors which determine the premium

Coverage

The more coverage you get, the more comprehensive package you choose, the higher your insurance premiums will be.

Personal Information

Your insurance history like your background history with insurance companies, personal factors like, car accident frequency or personal claims history, etc..

Competition in the Insurance Industry and Target Area

The competition in Insurance sector also a major factor to determine the insurance premium. The targeted area where the competition and standard of life exist.

Read More

Principle of Insurance |6 Basic principles of Insurance

Important Functions of Insurance |Primary and Secondary functions of Insurance

Types of Insurance | 7 Types of insurance companies

Calendar

June 2023
M T W T F S S
 1234
567891011
12131415161718
19202122232425
2627282930  

Recent Comments

    RSS Meks Blog

    • 10 Best Knowledge Base & Wiki WordPress Themes 2021 September 15, 2021
      Running a successful online business requires an exceptional WordPress knowledge base theme that organizes documentation and helps customers. Customization options, intuitive navigation, unique layouts, and fast responsiveness are just some of the features you need. The following 10 WordPress wiki themes represent the best options for 2021 and beyond. Explore the full range to determine […]
      Dusan Milovanovic
    • How to increase WordPress Memory Limit (quick fixes) June 16, 2021
      Here is a post about how to increase the memory limit in WordPress. Allowed memory size exhausted error message showed up in your WordPress installation? No worries – this is one of the most common errors in WordPress. You can apply an easy fix by increasing the memory limit in your PHP. Table of Contents […]
      Dusan Milovanovic
    • How to use (and why) WordPress sitemap plugin March 1, 2021
      Did you know that by knowing how to use the WordPress sitemap plugin you can significantly improve your site’s visibility and traffic? Although it isn’t mandatory to have a sitemap on your site, having one significantly improves the site’s quality, crawlability and indexing. All this is important for better optimization, which is why we wanted […]
      Ivana Cirkovic
    • 22 free and premium podcast software for your show [2021 edition] January 18, 2021
      You’re determined to start or improve your podcast but don’t know which podcast software to use to really make it stand out? We’ve got you! #podcasting Top 22 free and premium podcast software for your show #WordPressTips #podcasting The post 22 free and premium podcast software for your show [2021 edition] appeared first on Meks.
      Ivana Cirkovic
    • Digital storytelling with WordPress – an all-in-one guide to make your web stories pop! November 23, 2020
      Wondering how to improve digital storytelling with WordPress and build more awareness and exposure of your business? Let our guide lead the way. The post Digital storytelling with WordPress – an all-in-one guide to make your web stories pop! appeared first on Meks.
      Ivana Cirkovic
    • How to use WordPress autoposting plugin to improve your visibility and SEO? September 10, 2020
      Did you know you can use the WordPress autoposting plugin for your content efforts and improve not only your time management but your business and visibility as well? The post How to use WordPress autoposting plugin to improve your visibility and SEO? appeared first on Meks.
      Ivana Cirkovic
    • How to create a personal branding site? Step-by-step DIY guide August 15, 2020
      Looking for ways and means to create a personal branding site? Well, look no further ’cause we’re giving away all the how-to’s to do it yourselves! The post How to create a personal branding site? Step-by-step DIY guide appeared first on Meks.
      Ivana Cirkovic
    • Top 15 WordPress content plugins and tools to improve your visibility and rankings July 16, 2020
      Let’s take a look at some of the must-have WordPress content plugins and tools to use to improve both your UX and rankings. The post Top 15 WordPress content plugins and tools to improve your visibility and rankings appeared first on Meks.
      Ivana Cirkovic
    • WCEU 2020 recap – key takeaways from the biggest online WordPress conference June 9, 2020
      Missed WCEU 2020 and all the exciting stuff from there? Here are all the key takeaways and main points to remember so, take notes! The post WCEU 2020 recap – key takeaways from the biggest online WordPress conference appeared first on Meks.
      Ivana Cirkovic
    • How to change the WordPress username? An easy step-by-step guide May 14, 2020
      Wondering how can you change WordPress username once you set up your blog or site? Read all about it in our helpful guide! The post How to change the WordPress username? An easy step-by-step guide appeared first on Meks.
      Ivana Cirkovic

    Text

    Distinctively utilize long-term high-impact total linkage whereas high-payoff experiences. Appropriately communicate 24/365.
    /* */
    error: Content is protected !!