The premium is the amount that the insurance company charges for
the benefits payable under the policy. The premium may be payable
in one sum when the contract is made (a single premium policy) or
spread over a defined period such as the lifetime of the life
assured (
IHTM20081).
The amount of the premium depends upon the age, sex and state
of health of the life assured and the benefits payable.
When all the premiums due under a policy have been paid, or
the life assured has contracted to give up some of the benefits
originally purchased in exchange for ceasing payment of the
premiums, the policy is said to be paid up.
