Insurance for which the cost is distributed evenly over the period during which premiums are paid. The premium remains the same from year to year and is more than the actual cost of protection in the earlier years of the policy and less than the actual cost in the later years. The excess paid in the early years builds up a reserve which helps meet the costs in later years.
A form of life insurance in which premium levels remain constant throughout the term of the policy. In such a policy, more than the cost of protection is paid in earlier years to compensate for underpayment in later years.
Life insurance for which the premium remains unchanged year after year.