What is an insurance premium, and why do I need to pay it?

An insurance premium is the amount of money you pay to buy an insurance policy. It is essentially the cost or price that we pay for insurance coverage. Premiums are priced based on different factors, such as your age, gender, health condition, vehicle type, and no-claims bonus.

Paying insurance premiums on time is critical as they provide the policyholder (you) financial protection against unforeseen medical costs, loss of life, car repairs or home damage during the policy term. Failure to pay premiums means your policy may lapse, and you won’t be able to leverage the benefits when you need them the most.