What is premium?
Definition
Educational information only. Last reviewed August 25, 2026.
How it works in Canada
Premiums may be guaranteed level, adjustable by the insurer within contractual limits, or increasing at renewal. Missing payments can put a policy into a grace period and eventually cause it to lapse.
Example
A 20-year term policy may have a level premium for 20 years, then renew at a much higher annual rate reflecting the insured's age at renewal.
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Written and reviewed by CanadaGFI.ca Editorial Team
Licensed insurance and financial professionals contributing to CanadaGFI.ca
Published and last reviewed August 25, 2026. Read our editorial policy and disclosures.
This page is educational information about Canadian financial concepts. It is not personalized financial, tax, insurance or legal advice, and it does not consider your individual circumstances. Product availability, eligibility, pricing and tax treatment depend on the provider, your situation and current Canadian rules. Speak with a professional licensed in your province before acting.
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