An insurance premium is an amount that an individual or business pays for an insurance policy. Insurance costs are paid for documents covering health care, cars, family, life, etc. Once obtained, the premium is the income of the insurance company. It also represents a promise because the insurance company must provide insurance against the policy claim. Failure to pay installments may result in the cancellation of documents. For example, the possibility of prosecuting young drivers living in urban areas is higher than that of suburban drivers. Generally, the higher the associated risk, the higher the cost of the insurance policy. For life insurance policies, the starting age of coverage will determine your premium and any other factors, such as your current health status. The younger you are, the lower the premium. Conversely, the older you are, the more premiums you pay to the insurance company. After the policy period ends, the insurance premium may increase. If the risks associated with providing a specific type of insurance increase, or the cost of providing insurance increases, the insurer may increase the premium for claims submitted in the previous period.