The insurer is a one who provides the insurance cover particularly the insurance companies. The Policyholder is a one the concerned parties covered by the insurance. A policy is a written contract which is a legal one based on the insurance agreement. The premium amount should be paid by the policyholder periodically and it is calculated based on the expectation of the loss.
The folks can also have the choice of receiving the amount of the concerned money agreed in the policy. The premium amount is nothing but a specified amount procured by the insurance company and the folks should pay periodically pay the amount
in order to maintain the actual coverage of the insurance.
At the initial stage, the insurance companies examine the type of coverage including the location where the policyholder lives, the person’s job including the habits, medical condition, and the other major factors. Generally, the insurance companies offer a list of options when it comes to the concerned insurance premium amount. The folks can pay the insurance premium amount in the terms of the installment such as the monthly or the semiannual payments including the entire amount upfront before the coverage period starts. When it comes to the case of the life insurance such as the auto insurance, the annual insurance amount can be reduced by the terms of the no claim year. In Converse, the premium amount can be raised following a claim year.