An insurance premium is the amount of money that an individual or entity pays to an insurance company in exchange for insurance coverage.

The premium is typically paid on a regular basis, such as monthly or annually, and the amount is determined by a variety of factors, including the type of insurance coverage, the level of risk associated with the insured individual or entity, and the amount of coverage provided.

The insurance company uses the premiums collected to pay for claims made by policyholders, as well as to cover the administrative costs of running the insurance business.