Premium Balance
Categories: Banking
No, not the talent prerequisite needed to become a tightrope walker. We’re talking insurance here.
Purchase insurance and you have to pay a certain amount in premiums. These payments represent what you owe in order to receive the coverage.
Usually, the total premiums owed are more than a person can afford to paid all at once. So insurance companies let you pay it off in installments. Think about your car insurance. You owe a certain amount for the year, but the company lets you pay on a monthly basis (or sometimes bi-monthly or quarterly). The premium balance shows you the total you still owe.
Say your car insurance is $1,200 a year, paid in $100 monthly installments. Now it's June. You've paid $500 so far ($100 in each of the first five months of the year). You still have $700 left to pay to reach your annual total. Your premium balance is $700.
