An insurance premium
is the amount of money charged by a company for active coverage. The sum a person pays in premiums, also referred to as the rate
, is determined by several factors (including age, health, and the area a person lives in). People pay these rates annually or in smaller payments over the course of the year, and the amount can change over time. When insurance premiums are not paid, the policy is typically considered void and companies will not honor claims against it.
You can claim your new Christmas gifts as part of your home insurance or auto insurance policy, as described in The How-To’s of Insuring Christmas Presents
and these terms could be applied to insurance premiums. So let’s take a look at some premiums in general so you have a well-rounded feel of them.
What Premiums Cover
Generally, premiums cover whatever is detailed in the insurance policy, and the services provided or paid for depend entirely on the specific policy and type of protection. The following are the most common varieties and the basic services they often cover. Consumers should keep in mind that not all of these types of insurance are available or common in all countries, and there are many other kinds.
typically pays a lump sum in the event of the policyholder's death to those detailed in the person’s will or the plan itself. It may pay for funeral arrangements, outstanding debt, living expenses for those left behind, or other expenses related to the deceased's estate.
often pays for some portion of the expense of office visits, prescription medications, surgical procedures, mental health services, ongoing treatment, and/or emergency services. Not all of these services are always covered, however, and plans can vary widely. A person may have to pay out of pocket for certain services or for a percentage of the cost of services rendered.
premiums usually cover damages to the policyholder's vehicle, any other vehicles in an accident, roadside help, and/or medical bills related to an accident. Motorcycle, boat, and other types of motorized vehicle coverage usually provide the same types of services. This also could include items stolen from a vehicle. So remember to keep your gifts well hidden, but also to go the extra step and see if your policy is covering everything you need covered.
Home owners' insurance
, which is typically paid yearly or as a part of a combined escrow mortgage payment in some countries, usually covers damages to a home as well as its contents in the case of theft, fire, storms, and many other disasters. This also includes theft. During the holiday rush, remember that crime is high during this time. Renter's coverage
is similar, although usually only pays for damage caused by the policyholder or damage to the policyholder's personal items.
Please give us a call today
for a free quote or to update your home or auto insurance to include your new Christmas presents!!!
Insure with us today, Be sure of tomorrow!