One of the most important parts of insurance is understanding what insurance premiums are. There are several different parts of paying for insurance, but this one is the most basic and fundamental. Let me show you.
What are Insurance Premiums?
Insurance premiums are usually pretty easy to understand. Premiums are simply the payment that you make toward your coverage every month, every paycheck, etc.
If you see that $250 was taken out of your paycheck for health insurance, that was your premium.
If you see that $25 was taken out of your bank account for life insurance, that was your premium as well.
It’s important to note that you will have to pay your premiums no matter what. Even if you hit your out of pocket maximum for the year (we’ll talk about that in a minute), you will still have to pay your premiums.
Final Thoughts
If you don’t pay your insurance premiums, you will cease to have coverage. It doesn’t matter if it is health insurance, dental insurance, disability insurance, life insurance, or any other kind.
You must make your payment.
You can do this!
I am here for you!
Until next time!
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