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Tags: insurance
Categories: Economics & Finance
The specified amount of payment required periodically by an insurer to provide coverage under a given insurance plan for a defined period of time. The premium is paid by the insured party to the insurer, and primarily compensates the insurer for bearing the risk of a payout should the insurance agreement’s coverage be required.
(source: http://www.investopedia.com/terms/p/premium.asp)
