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Premium

The amount you pay, usually monthly or annually, to keep a policy active.

What it actually means

Your premium is the price of the policy itself — what you pay the insurer in exchange for their promise to cover you if something happens. It's set based on your risk profile (age, health, driving record, location, coverage amount) and doesn't get refunded if you never file a claim.

Example: A 35-year-old with a $500,000 term life policy might pay a premium of about $25–$35 per month.

See it in context

Run the free Insurance Coverage Blueprint to see how premium and terms like it apply to your specific situation — no signup required.

Related terms

DeductibleUnderwritingTerm Life Insurance

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