YOU ASK:
What is the definition of Rate?
WE ANSWER:
A Rate, in insurance parlance, refers to how much a unit of insurance will cost.
Premiums rates charged by the insurance company for coverage is computed based on the loss experience the insurance company had for that risk.
Several factors also come into play. These include the age of the proposed insured, his health condition and occupation. The insurance premium rate is computed by the insurance company's actuarial team, who makes use of mortality and morbidity tables (for life and health insurance policies).
To get the best rate, it is best to get quotes from different insurance companies, as the rate for the same coverage of risk varies from company to company.
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