regular premium
Also called: premi reguler
A premium paid regularly, for example monthly, quarterly, or annually.
What it means
A regular premium is an insurance premium paid periodically, for example monthly, quarterly, or annually, over the policy term. This model is most common for families because the burden is spread out and easier to fit into the household budget. The premium amount is usually fixed as agreed, though it can change if there is an adjustment according to the policy terms.
Why it matters for families
A regular premium requires payment discipline so the policy does not lapse or terminate. If the family neglects to pay, protection can disappear right when it is needed. Therefore, the premium should be budgeted like a mandatory installment, not paid only if there is money left over.
Example
For example, a family with an income of Rp8 million per month allocates Rp400 thousand for health and life insurance premiums. That amount is about 5 percent of income, budgeted automatically at the start of each month before other spending.
Common misunderstanding
Many think a regular premium can be stopped at any time without consequences. The correction: stopping payments can cause the policy to lapse and the protection benefits to be lost.
