What does Renewal Premium mean? Read on to discover the definition & meaning of the term Renewal Premium - to help you better understand the language used in insurance policies.
A renewal premium is the premium on a policy upon its renewal. By paying an insurance company money with the intention of continuing the benefits of the insurance contract after coverage ends or modifying the terms of an insurance policy, such as adding a beneficiary or increasing the amount of coverage, a policyholder seeks a renewal premium. The insurance company may subsequently change the premium after reviewing the status of the policyholder upon such a renewal.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Renewal Premium. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: