Whichever kind of insurance you buy, auto, mortgage, life insurance, etc., itís compulsory that you pay insurance premium to the insurer throughout the policyís term. Itís an amount of money you pay to keep the insurance policy in effect, a particular term in the insurance industry. This premium term is probably unknown to first-time insurance buyers. Simply speaking, it is a cost you have to pay for your policy. The insurance company shall charge you the amount of money in accordance with the coverage you get.