Updated December 04, 2014.

Definition:

A premium is the monthly fee that is paid to an insurance company or health plan to provide health coverage, including paying for health-related services such as doctor visits, hospitalizations, and medications.

If you have job-related insurance, your employer pays the monthly premium. Most likely, your company will require that you pay some portion of the monthly premium, which will be deducted from your paycheck.

If you are self-employed, or buy your own health insurance, you pay the entire monthly premium.

Also Known As: health insurance premiums