A premium is the amount of money you pay, usually on a monthly, quarterly, or annual basis, to keep an insurance policy — whether life, health, or any other type — active and in force. Missing premium payments beyond a certain grace period can cause your policy to lapse, meaning you'd lose your coverage and potentially any benefits accumulated so far.
Premium amounts depend on several factors specific to the type of insurance — for life insurance, these typically include your age, sum assured, health condition, and lifestyle habits like smoking, while health insurance premiums also factor in pre-existing conditions and the city you live in. Generally, buying insurance earlier in life locks in a lower premium, since premiums rise with age and increasing health risk, which is why many financial planners suggest buying adequate insurance cover as early as possible.