What is a "premium"?

Very often in the media mention this term. What was he denotes know not all. insurance contributions are the amount of money paid by the person concerned (or his representative) in order to get insurance. Simply put, the premium - a payment for insurance. He carried a lump sum or in installments. The lack of payment of insurance premiums in some cases leads to debt, in others - to the termination of the insurance contract. This parameter is calculated from the value of tariff and adjustment factors. The value of the premium is determined depending on the type of insurance. There is a voluntary and compulsory insurance, are subdivided into different shapes. By voluntary insurance includes protection Accident, fire insurance, theft and property damage insurance of financial risks (eg, mortgages), as well as responsibility for some activities. It is compulsory to pay insurance premiums for the system of medical, pension and social insurance, as well as third party liability and passenger traffic. At the moment, voluntary insurance in Russia is at an average level of development, it is rather the exception, not the ordinary rule. In some Western European countries citizens spend on premium payments to a third of their monthly earnings. In our country on their own initiative People are spending to protect against the risks of less than 2% of salary.