Insurance Dictionary

The premium is the cost paid to the insurer when the insured person is insured, according to the rate of insurance set at the time of the insurance. When the insured property suffers from disasters and accidents resulting in all or part of the loss, or in the life insurance accident, the insurance person shall pay the insurance premium. The insurance premium consists of the insurance amount, the insurance rate and the insurance term. The amount of the premium is proportional to the size of the insurance amount, the level of the insurance rate and the length of the insurance term, that is, the higher the amount of insurance, the higher the insurance rate, the longer the insurance term, the more insurance premiums. It is the obligation of the insured to pay the premium. If the insured fails to pay the premium on time, the insurance contract will lapse in voluntary insurance, and in compulsory insurance, a certain amount of late fees shall be attached.

Basic introduction

insurance premium: refers to the fee paid by the policyholder to the insurer in accordance with the contract in order to obtain insurance protection, and the insurance premium paid by the policyholder in accordance with the agreed method is the condition for the effective effect of the insurance contract. Premium Rate is determined by insurance company based on different risks and destinations based on the payout rate for a certain period of time and different types of goods. The formula for calculating insurance premiums is: insurance premiums, insurance amounts, insurance rates.

Payment method

There are generally four ways to pay the premium: pay once, pay annually, pay on a quarterly basis, pay on a monthly basis. The insurance rate is the proportion of the premium calculated according to the amount of insurance. Take property insurance as an example, it is based on the type of insurance subject matter, the size of the risk probability, the location of storage, the extent of possible loss and the duration of insurance and other conditions to consider. The insurance amount unit that calculates the insurance rate is generally in units of each thousand yuan, i.e. how much insurance premium should be paid per thousand yuan, usually expressed in a thousand yuan. The insurance rate consists of pure rate and surcharge rate. These two-part rates are added together to be the gross rate, which is the rate at which the insurer collects insurance premiums from the insured.

Characteristics

Must-have

The insurance premium addresses the economic loss caused by the accident. And accidents have two characteristics: First, the inevitable existence. In our life, such as floods, earthquakes and other natural disasters or fires, explosions and other accidents are inevitable. If there is no accident inevitably exist, people do not have to take many measures to prevent, if the accident is not inevitable, insurance also lost the basis of existence. The second is accidental sex. Although the existence of an accident is inevitable, the time, place, extent, whether or not the accident occurred, but caused by the extent of economic losses, is accidental. In this way, the insured pays the insurance premium, that is, the inevitability of the occurrence of the accident and the accident accident accident, the absolute variables into a relative constant, the uncertainty of things to determine. An understanding of the insured would realize that, after incurring insurance premiums, if there was no accident, all his operational activities were normal and that he had received the benefits due to normal operation, he would not feel that he would not be compensated for the economic loss caused by the accident. If an accident, resulting in economic losses, got compensation, only to compensate for his loss part, and because of the accident incident affected his normal operation, resulting in the loss of income is difficult to make up, so although he received compensation, will not produce a cheap psychological feeling. Those who think that after paying insurance premiums, not to pay compensation is a loss, with compensation, is to earn the idea, is the insurance is the commodity economy operation umbrella of a misunderstanding.

Supportability

After the insured pays the insurance premium, it is not necessary to encounter an accident, but may encounter an accident. In order to prevent possible accidents, the delivery of insurance premiums, he can safely carry out business activities, as some people say, no insurance, ships dare not sail, aircraft dare not take off (refers to operations). Because no one can guarantee that the voyage will be safe.