What Is YouTube Premium, and Is It Worth It?

Depending on the type of insurance contract you have, you’ll likely have different payment options and might pay monthly, biannually, or annually for your policy. Premiums are paid for many types of insurance, including health, homeowners, and rental insurance. These payments must be submitted on a regular mode or schedule to continue a policy. A common example of an insurance premium comes from auto insurance. A vehicle owner can insure the value of their vehicle against loss resulting from accident, theft, fire, and other potential problems. Sophisticated investors sometimes sell one option (also known as writing an option) and use the premium received to cover the cost of buying the underlying instrument or another option.

• A pro-rata refund returns the unused portion of the premium without penalty, often applied when the insurer cancels the policy.
• Google’s naming schemes have always been a bit of a mess, and the same is true of YouTube.
• The amount is determined by factors such as coverage type, risk profile, and underwriting guidelines.
• Keep in mind, other fees such as trading (regulatory/exchange) fees, wire transfer fees, and paper statement fees may apply to your brokerage account.
• Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader.

Higher deductibles typically lead to lower premiums, as the insured assumes more risk. During this period, insurers may send reminders about the overdue payment. Policyholders facing financial difficulties should communicate with their insurer, as some companies offer payment plans or policy modifications. Setting up automatic payments or monitoring billing statements can help prevent missed payments. Regulations require insurers to notify policyholders of rate changes, providing explanations for adjustments.

The sooner the expiration date, the lower the premium will probably be — This is because there is less time for the stock price to either rise or fall to be “in the money” (profitable). An all-purpose cleaner has many uses and you can use it to clean a bunch of different spots in your home. It appears in several different places in finance with several different meanings — Often, it refers to the price or value of something.

Price Premium

Consumer protection laws require insurers to disclose how premiums are calculated and notify policyholders of rate changes. In some states, public hearings are held for significant rate increases, allowing regulators and consumer advocates to review pricing decisions. Because traditional bonds are fixed-rate investments, the interest rate doesn’t change over the life of the bond. As a result, it’s possible that a bond’s coupon rate could one day be higher (or lower) than the average market interest rate for those types of bonds.

What is a risk premium?

• When a stock’s price is highly volatile, it’s likely that its price will swing significantly in one direction or the other.
• This excess return compensates investors for taking on the relatively higher risk of equity investing.
• Laws such as the Affordable Care Act (ACA) set specific requirements for health insurance premiums, including limits on administrative costs.
• Assets may trade at a premium due to increased demand, limited supply, or perceptions of increased value in the future.
• “The moron risk premium is back, on steroids,” noted Jo Michell, a professor of economics at the University of West England on Bluesky.

All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. If you most often watch YouTube from your desktop, the utility is definitely in the ad-blocking. Video ad revenues have been falling lately, which has led creators to put even more ads in their content. If you want to watch videos uninterrupted while still supporting those who make them, Premium is the only way to do so. Economics is the study of how individuals and groups use their limited resources to produce, distribute, and consume goods and services.

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With each type of insurance, you’ll probably have different coverage options from which to choose. For example, let’s say you purchased a bond for $500 with a coupon rate of 5%. Since the time you bought the bond, the market interest rate has gone down to 3%. Because that bond gets higher returns than the market, it’s worth more than it was before.

What is a bond price premium?

Therefore, you could likely sell that bond for a premium above its face value of $500. A premium bond is one that is currently selling for more than its face value. A bond might be trading at a premium if the bond’s interest rate (aka its coupon what is a premium rate) exceeds the current market rate. An example of a premium that most of us are familiar with is the type of premium that you pay for insurance coverage.

What Investors Need To Know About the ‘Moron Risk Premium’

A pro-rata refund returns the unused portion of the premium without penalty, often applied when the insurer cancels the policy. A short-rate refund applies when the policyholder cancels before the term ends, with the insurer deducting a cancellation fee or retaining a portion of the premium for administrative costs. State insurance departments oversee premium pricing to ensure fairness and transparency. Insurers must submit rate filings detailing their pricing methodologies, actuarial justifications, and anticipated claims costs.

A value stock is one that is trading at a lower price than you would expect when compared to value estimations. Premium pricing is a marketing strategy that involves tactically setting the price of a particular product higher than either a more basic version of that product or versus the competition. The purpose of premium pricing is to convey higher quality or desirability than other options.

Because the Treasury Department backs these investments, they are as close to risk-free as you can get. As you venture into riskier investments, you would expect the potential return to increase with the level of risk ⁠— This higher return is the risk premium. A risk premium involves returns on an asset that are expected to be in excess of the risk-free rate of return. It represents payment to investors for tolerating the extra risk in a given investment over that of a risk-free asset.

In 2025, on the heels of the Trump administration’s tariff announcements, some market watchers noticed the extra compensation demanded for buying American assets, including Treasurys. “The moron risk premium is back, on steroids,” noted Jo Michell, a professor of economics at the University of West England on Bluesky. Originally coined to describe major increases in bond interest during U.K. Policyholders should review policy documents to understand refund terms and fees. Canceling a policy without securing alternative coverage can leave individuals exposed to financial risks, particularly in cases where insurance is mandatory, such as auto or health insurance.

These notifications help policyholders understand changes in risk and coverage. Reviewing these updates allows policyholders to explore discounts, risk mitigation strategies, or alternative policies that may offer better rates. Let’s use that formula to measure the risk premium of investing in the stock market instead of U.S. Several different factors go into determining insurance policy premiums.

If you already block ads on YouTube with an ad blocker, the Premium service might sound pretty useless. However, ad blockers prevent creators on the platform from receiving revenue from your views. For many, the ad revenue is one of their primary sources of income. Google’s naming schemes have always been a bit of a mess, and the same is true of YouTube. However, this changed to YouTube Premium following the rebranding of YouTube Music as an entirely separate app.

Understand the role of premiums in insurance, including payment schedules, rate adjustments, and what happens if payment terms aren’t met. Keep in mind, other fees such as trading (regulatory/exchange) fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Robinhood Financial’s Fee Schedule to learn more regarding brokerage transactions. Please see Robinhood Derivative’s Fee Schedule to learn more about commissions on futures transactions.

Relatedly, it is the price paid for protection from a loss, hazard, or harm (e.g., insurance or options contracts). The word “premium” is derived from the Latin praemium, where it meant “reward” or “prize.” A growth stock is one that has a strong growth rate and a high return on equity. These stocks trade at a higher price than their valuation indicates but have the potential of being overpriced if their promised growth does not materialize. If a bond’s interest rate is lower than the current market rate, then that bond might sell at a discount, meaning for less than its face value.