Definition:
The amount of payment due to the insurance company in exchange for the insurance policy. Depending on the length of the policy term, the premium is sometimes paid at the beginning or in monthly payments. Regardless of the payment method one is insured to the full value of the policy at any time during the policy period as long as payments are on time as stated in the insurance policy.
Examples:
Although John just bought his insurance policy yesterday and the insurance company did not require a payment until next month, the accident he had today will be covered to the full extent of the policy.
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