Premium: The price of insurance that pays the insured to the insurer as consideration of the risk he takes and the commitment which is their consequence.
There are different types of bonuses:
* First natural
* Pure Premium
* First Commercial
* First level
* Single premium
* First regular
Premium natural: In the life insurance premium is dependent on the mathematical calculation of risk. For this reason, a higher risk, the higher the premium natural and vice versa.
Premium: The risk premium of other classes of insurance.
First name: this is the premium paid by the insured and actually consists of two parts: the premium or pure natural on the one hand and operating costs and profit of the insurer on the other. Of these costs are the most important:
* Commission for producers who placed insurance.
* Commission charge that is payable to staff for the collection of premiums.
* Administrative expenses and advertising.
* Surcharge for splitting the premium. The premium can be split through regular contributions, and this gives rise to a charge, as is often the case with sales to run.
* Margin of safety. It is a charge for any increase in expenditure and in particular the possibility of an increased risk.
First level: The implementation of premium natural simple to calculate the premium would be prohibitive commercial life insurance, from a certain age. In this case the premium commercial and continuous increase of the time when the insured desistiría of the contract given the high price they must pay for their insurance. It has therefore been necessary to level premiums so that the premium market is the same in life insurance for the duration of the contract.
Single premium is payable by the insured when it is done on a single occasion.
Periodic premiums: the premium is paid only with partial payments, thus providing a possibility that the insured can decide on the merger of these operations.
The risk: It is a major factor in the insurance business. Is the subject of insurance as a prevention measure uncertain event that occurs forces the insurer agreed to pay compensation. In the insurance risk is always uncertain. Even the death of a person who has fatally happen sooner or later, is an uncertain event could be sure, because no one knows when it has to happen.
For an uncertain event, it can certainly not depend on the willingness of insured since then there would not be able to secure. The risks are also on the things a certain regularity which makes the field of insurance. The insurer has established practice standards for measuring risk and calculating the standards to be collected by the insurer.
Determines the risk premium charged, and consequently for aggravated risks related to the normal risks, the premium will be higher. In the insurance risk assumed by the insurer must be defined very clearly, because it is a crucial element in this agreement.
Furthermore, it is necessary that the subject matter of insurance is properly characterized in order to enable the insurer to know where lies the risk.