The insurance premium is a sum of money that is paid in return for the → Insurance cover to a → Insurer is paid. The insurance premium is calculated according to the amount, frequency and due date in the → Insurance policy shown. If the → Policyholder a payment method during the year (semi-annually, quarterly, monthly), it is customary for the → Insurer a surcharge as interest compensation. Insurance premiums must always be paid in advance.

A distinction is made between the net insurance contribution (excluding → Insurance tax) and the gross insurance premium (incl. → Insurance tax). The latter is also the payment contribution.

Source reference: See VDT publication "VDT article series part 5 l Glossary" and the source indicated there.