Premium
The amount you pay an insurance company in exchange for cover.
Insurance premiums depend on age, sum assured, term, health, smoking status, and policy type. Term plans are the cheapest per rupee of cover; ULIPs and endowment plans look like 'insurance' but most of the premium goes into investments and charges. Premiums for health and term insurance are eligible for deduction under Section 80D and 80C respectively (old regime).
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Inside Finlo
A 60-second lesson that puts this term in context, alongside the others, lives inside the Finlo app.