In the event of an untimely death, an accident, damage to a vehicle or home, or any other unfavorable circumstance, insurance is a legal contract between the insured (the person or business that purchases the policy) and the insurer (the company that offers insurance). The insurer agrees to pay the insured party a predetermined sum of money in compensation. A regular payment known as the "premium" is required of the insured to receive the benefits of the policy. A predetermined sum that the policyholder must pay to obtain a specific level of insurance coverage is referred to as the "premium." Read more on The Witty Talks
