An insurance premium is the amount of money that an individual or business pays to an insurance company for coverage against potential risks. This payment can be made monthly, quarterly, or annually, depending on the policy terms. The premium amount is determined by various factors, including the type of coverage, the insured's risk profile, and the overall market conditions. Insurance premiums are essential for maintaining an insurance policy, as they ensure that the policyholder is protected in case of unexpected events, such as accidents, illnesses, or property damage. If the premium is not paid, the coverage may lapse, leaving the policyholder unprotected.