Premium For Insurance Meaning. The premium payments have a due date plus a grace period. When you buy home or auto insurance, you sign a contract that says you agree to pay your premium in exchange for a certain amount of coverage from the insurance company.
We always recommend that our clients fully understand their premium payments due, why they are the size that they are, and how this compares to the cost of insurance. A contract (insurance policy) in which the insurer (insurance company) agrees for a fee (insurance premiums) to pay the insured party all or a portion of. An insurance premium is the amount of money an individual or business pays for an insurance policy.