Life Policies: definitions: 'premium'
The premium is the amount 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, gender and state of health of the life assured and the benefits payable under the policy.
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 not paying any further premiums, the policy is said to be paid up.