A premium is the price paid for insurance coverage. It may be payable once, periodically, or at renewal, depending on the product. The amount reflects factors such as the insured risk, sum insured, coverage period, expenses, and underwriting decisions rather than simply the likelihood of making a claim personally.
When comparing offers in Nepal, compare equivalent benefits and exclusions instead of choosing only the lowest premium. A cheaper policy may carry a larger deductible or narrower protection. For long-term life insurance, consider whether future instalments remain affordable because non-payment can lead to lapse.