Earned Premium

For most, insurance doesn’t come for free...it comes at the cost of premiums. Earned premiums are your premiums, but from the point of view of the insurance company: the one raking in your dough.

Earned premiums are the premiums that you regularly paid to the insurance company over time, except they’re “earned,” which means they now belong to your insurance company, who “earned” them.

Because the insurance company took on risk for you during each time period you paid an insurance premium, the insurance company now gets to keep the premium you paid, and your insurance for that time period has expired. Time to pay up for another time period if you want to stay insured!

Hey, everybody’s gotta earn a living somehow, right? Well...almost everybody...