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What does insurance companies do with the monthly payments they receive from customers?
Those payments are referred to as "premiums". The premiums are paid in return for the insurance company's promise to pay the face amount of the insurance upon the death of the person insured.
The premiums charged by an insurance company are required to be "actuarially sound". This means that the premiums collected for all policies of a particular type and covering similar kinds of risks (for example, people with no health problems), together with income earned on the premiums, has to be enough to pay expected losses.
Insurance companies are permitted by the laws of the states in which they do business to invest a part of premiums collected in conservative investments. The earnings on those investments adds to the "surplus" of the insurance company and helps to keep it financially sound. In turn, the number of policies that the company can issue (its "risk exposure") is a finction of its surplus and certain other factors specified by the insurance laws of the states in which it operates.
A certain amount of the premiums are also applied to the ongoing business expenses to operate the company.
What else can I help you with?
What are your monthly payments?
Monthy payments are payments you make every month, like a house payment, loan payment, water, electric, gas (for heating), phone, insurance if you pay monthly, etc.
What is the difference between installment and annuity?
Instalments are payments for your debts which can be paid on monthly, quarterly or yearly basis or way to make payments. Annuity is insurance product which is contract between you and insurance company for your investments.
Does insurance premium mean monthly?
No. The premium is the price you pay for the coverage. Depending on your insurance company, the premium may be paid all at once or in payments.
How much down and what are your monthly payments ?
How much down and what are your monthly payments
What does monthly housing payments mean?
It means that you have to make monthly payments on your house.
Are car insurance payments monthly?
It depends on the policy and your credit rating. Some insurance companies allow you to pay monthly, in advance, for your insurance. Many want 3 to 6 months in advance.
Can mercury insurance payments be made in installments?
Usually insurance companies offer their clients one of two ways to pay for their insurance. Either you can pay it all up front every six months or so or you can make monthly payments.
Which companies offer monthly auto insurance?
There are many companies that offer monthly auto insurance. Companies that offer monthly auto insurance include Geico, State Farm, Allstate, Nationwide, and Progressive.
What are your monthly payments?
Monthy payments are payments you make every month, like a house payment, loan payment, water, electric, gas (for heating), phone, insurance if you pay monthly, etc.
If an insured changes his payment from monthly to annually what happens to the total premium?
When an insured changes their payment frequency from monthly to annually, the total premium typically decreases. Insurance companies often offer a discount for annual payments because it reduces administrative costs and the risk of missed payments. Consequently, the insured may pay a lower overall amount compared to making monthly payments. It's advisable to check the specific terms with the insurance provider, as the discount can vary.
What is the lowest monthly payment for USAA insurance?
USAA is an insurance company. Monthly payments are dependent upon the customer and the specific insurance plan that they have. The best thing to do is to visit the USAA website to get a personal quote.
What is term life insurance quotes?
Term life insurance quotes are estimates of monthly payments for life insurance, which pays for funeral expenses after death.
Benefits of eastwood insurance?
There are several benefits in using Eastwood Insurance. These include lower monthly payments and a better quality of customer service.
What are some companies with cheap monthly rates for auto insurance?
The General offers cheap monthly auto insurance because it has flexible plans. Liberty Mutual, Farmers, and Safe Auto also offer cheap monthly insurance rates.
What is it called when you pay a monthly car insurance fee?
This would be financing your premium. Some companies have payments plans and sometimes you go through a premium finance company. Premium finance companies are generally used for larger premiums like commercial accounts.
What is the difference between installment and annuity?
Instalments are payments for your debts which can be paid on monthly, quarterly or yearly basis or way to make payments. Annuity is insurance product which is contract between you and insurance company for your investments.
What is an allianz variable annuity?
Variable annuity is a life insurance plan where you make series of monthly payments or a lump sum. and in return the insurance company makes periodic payments to you immediately or in the near future.
