Policy:
The policy is a written document that contains the terms of the agreement between the
insurance company and the owner of the policy.
Policy Benefit:
The agreement is a legally enforceable contract under which the insurance company
agrees to pay a certain amount of money known as the policy benefit or policy proceeds.
Premium:
When a specific loss occurs provided that the insurer has received a specified amount of
money, called the premium.
In general, individuals and businesses can purchase insurance policies