My Insurance Policy

My Insurance Policy - Premium and Policy Term Today, we’ll finish up the last of our preliminary terms and definitions from our original starting post. This will be a brief post, as hopefully the concepts of premium and policy term are simple in nature by themselves.

Premium, as most know and many can be frustrated with, is the cost of your insurance coverage during the policy term. Premium rates are calculated on a multitude of variables - too many to list all of them - which can and may include your geographical location, any history relating to the insurance (health, driving, etc.), and credit history. A few items you should know about the cost of insurance:

• Premium has to be paid to maintain coverage
• Changes to you policy will almost always constitute a change in your premium
• Cancelling an insurance policy does not mean you’re paid up; there may be remaining premium or even short-rate fees (administrative fees for cancellations mid-term) assessed.
• For a few other insurance thoughts, visit http://www.squidoo.com/myinsurancepolicy

Your policy term is the length of the insurance contract. Commonly, auto insurance policies are six months, property policies are twelve months as are health policies. Disability, long-term care, and life insurance policies can vary based on the type of policy and agreed contract time, i.e., a 20-year term life insurance policy is obviously 20 years. Insurance premium and policy terms should be outlined within any policy contract, so be sure to read over your information. Until next time…

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