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Health Insurance Premiums. A health insurance premium is the monthly payment made to an insurance company to buy an insurance policy. Premiums are the primary source of revenue for insurance providers, which, in order to make a profit, must take in more money in premium payments than they pay out in benefits.
DEFINITION of 'Advanced Premium Tax Credit'. A type of federal subsidy that reduces the amount individuals pay for their monthly health insurance premiums.Advanced Premium Tax Credits are a provision in the Patient Protection and Affordable Care Act, signed into law on March 23, 2010 by President Barack Obama.f eligible, the tax credit amount a person receives depends on his/her income; you will pay more for the monthly premium if your income falls near the top of the range, and less if your income is closer to the bottom.