Listen to a Business English Dialogue about Insurance premium
Jeremy: Hi Abigail, do you know what an insurance premium is?
Abigail: Yes, it’s the amount of money an individual or business pays to an insurance company for coverage.
Jeremy: That’s correct. Insurance premiums are typically paid on a regular basis, such as monthly or annually.
Abigail: So, how are insurance premiums determined?
Jeremy: Insurance premiums are based on factors like the type of coverage, the amount of coverage needed, and the level of risk associated with the insured individual or business.
Abigail: I see. Are there any ways to lower insurance premiums?
Jeremy: Yes, individuals and businesses can lower their insurance premiums by increasing deductibles, bundling multiple policies with the same insurer, or implementing safety measures to reduce risk.
Abigail: That makes sense. So, what happens if someone doesn’t pay their insurance premium?
Jeremy: If someone fails to pay their insurance premium, their coverage may be cancelled, leaving them unprotected in the event of a claim.
Abigail: That sounds risky. So, why is it important to pay insurance premiums on time?
Jeremy: Paying insurance premiums on time ensures that individuals and businesses maintain continuous coverage and are protected against unexpected losses or liabilities.
Abigail: Thanks for explaining, Jeremy. Insurance premiums seem like an important aspect of managing risk.
Jeremy: No problem, Abigail. They’re a critical part of financial planning and risk management for individuals and businesses alike.