---
title: "What Is Premium? Definition | Epic Life Glossary"
description: "A premium is the amount you pay to keep an insurance policy active. You can pay it monthly, quarterly, semiannually, or annually, depending on the carrier."
url: https://epicline.preview.multisites.ai/glossary/premium
publisher: Epic Life Group
apply: https://epicline.preview.multisites.ai/apply
quote: https://epicline.preview.multisites.ai/get-a-quote
---

Policy mechanics

# Premium

A premium is the amount you pay to keep an insurance policy active. You can pay it monthly, quarterly, semiannually, or annually, depending on the carrier.

## Why it matters

Premium is based on your age, health, tobacco use, coverage amount, and policy type. Term policies cost less than permanent ones at the same coverage. If you stop paying, the policy can lapse after the grace period. Paying monthly often costs a little more than paying yearly. Always check whether the premium is level or can rise.

Source: [law.cornell.edu](https://www.law.cornell.edu/wex/premium)

[Read next, for familiesHow much does life insurance cost, and what drives the price?](https://epicline.preview.multisites.ai/life-insurance/cost)

## Where we use this term

-   [Building an insurance agency: how overrides and downlines work, and what is legal](https://epicline.preview.multisites.ai/guides/building-an-insurance-agency-overrides-downlines)
-   [Burial insurance vs life insurance vs pre-need funeral plans: what is the difference?](https://epicline.preview.multisites.ai/guides/burial-insurance-vs-life-insurance-vs-preneed)
-   [How much does final expense insurance cost, and what sets the price?](https://epicline.preview.multisites.ai/guides/final-expense-insurance-cost)
-   [How do you file a life insurance claim after a loved one dies?](https://epicline.preview.multisites.ai/guides/how-to-file-a-life-insurance-claim)
-   [IMO vs FMO vs MGA: which structure fits an independent agent?](https://epicline.preview.multisites.ai/guides/imo-vs-fmo-vs-mga)

## Start your climb.

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