Insurance
Premium
The amount you pay, usually yearly, to keep an insurance policy active.
The premium is the price of your insurance. Stop paying it and your cover lapses, leaving you unprotected.
For term and health insurance, a higher premium generally buys more cover or more features.
Buying young locks in lower premiums, since insurers price on age and health at the time you start.
For example
A ₹1 crore term plan bought at 25 might cost ₹800/month, but the same cover started at 40 could cost more than double.