What are premiums?
When you make any type of investment you are required to pay regular premiums. These regular premiums go on accumulating and on these you get interests that further helps in growing the invested money. Even in insurance when you buy an insurance policy you pay premiums on it. From all this, we can easily say that an insurance policy is similar to an investment policy. In life insurance you buy a policy with some particular policy value or cover. This cover is the real amount that the life insurance company pays to the insurer or the nominee, in case of any event or maturity respectively. For this covered amount you are required to pay some calculated amount to the company. This calculated amount is known as premium. These premiums go on collecting for a long time and are returned in the form of the cover along with some other additional amount by the company to the insurer. As the life insurance policy involves premiums it can be better called as a type of investment where you invest f
