General Insurance Term
Premium
The amount you pay an insurer to keep your policy active.
What is Premium?
A premium is the amount you pay your insurer — monthly, yearly or as a lump sum — in exchange for cover. As long as premiums are paid, your policy stays active and the insurer is obliged to pay valid claims.
Your premium depends on factors like the sum insured, your age, health, the type of cover and any add-ons you choose.
Example
A ₹10 lakh health policy might cost a 30-year-old around ₹8,000 per year in premium.
Related terms
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