Question: What Do You Mean By Premium?

What are the types of premium?

Modes of paying insurance premiums:Lump sum: Pay the total amount before the insurance coverage starts.Monthly: Monthly premiums are paid monthly.

Quarterly: Quarterly premiums are paid quarterly (4 times a year).

Semi-annually: These premiums are paid twice a year and are way cheaper than monthly premiums.More items…•.

What is the difference between premium pay and overtime pay?

Premium overtime is calculated on one-and-a- half times the regular rate of time (1 hours of premium OT worked = 1.5 hours earned). … Straight overtime is time worked that is more than an employee’s regularly scheduled hours but less than 40 hours.

What is premium amount?

An insurance premium is the amount of money an individual or business pays for an insurance policy. … Once earned, the premium is income for the insurance company. It also represents a liability, as the insurer must provide coverage for claims being made against the policy.

What is the difference between a premium and a rate?

A person, and/or employer, usually pays premium monthly, quarterly, or yearly. Rates are the cost of a specific plan’s benefits, adjusted for the age, zip code, smoking status, andfamily size of each possible insurance applicant.

How is premium calculated?

Insurance companies consider several factors when calculating insurance premiums:Your age. Insurance companies look at your age because that can predict the likelihood that you’ll need to use the insurance. … The type of coverage. … The amount of coverage. … Personal information. … Actuarial tables.

Is an insurance premium monthly or yearly?

An insurance premium is the monthly or annual payment you make to an insurance company to keep your policy active.

What does premium mean in finance?

Premium can mean a number of things in finance—including the cost to buy an option. Premium is also the price of a bond above its issuance price. Premium is also considered the periodic payment required for insurance coverage.

What is a premium account?

The share premium account represents the difference between the par value of the shares issued and the subscription or issue price. It’s also known as additional paid-in capital and can be called paid-in capital in excess of par value. This account is a statutory reserve account, one that’s non-distributable.

Are premium snaps illegal?

Premium Snapchat is a surprisingly popular way for anyone to make money with explicit photos and videos. … It’s not illegal to do this whole Premium Snapchat thing, unless any parties involved are underage.

What is Instagram premium account?

Exclusive pricing and access to higher volume-based rebates. Invitations to premium client dinners, round tables and social events. Access to advanced educational seminars and workshops. Gain priority access to IG product and platform launches. Premium.

What is the definition of premium?

1 : a reward for a special act. 2 : an amount above the regular or stated price There is a premium for overnight delivery. 3 : the amount paid for a contract of insurance health insurance premiums. 4 : a high or extra value He put a premium on accuracy.

What is an example of a premium?

Premium is defined as a reward, or the amount of money that a person pays for insurance. An example of a premium is an end of the year bonus. An example of a premium is a monthly car insurance payment. … A sum of money or bonus paid in addition to a regular price, salary, or other amount.

What is another word for premium?

In this page you can discover 51 synonyms, antonyms, idiomatic expressions, and related words for premium, like: prime, select, superior, award, something extra, freebie, honorarium, prize, reward, bounty and added.

What can share premium account be used for?

That part of shareholders’ funds (shown separately on the balance sheet) formed of the premium paid for new shares above their nominal value. Used to pay up new shares to be allotted to members as fully paid bonus shares. … Reduced (or cancelled) by means of a reduction of capital.

What factors determine your insurance premium?

Factors that affect your car insurance premiumThe driver’s age. … The vehicle you drive. … Where you park your car at home. … Your insurance excess. … Market value insurance. … The regular driver. … The type of insurance you take out. … Whether or not there’s finance on the vehicle.More items…