First year premium in life insurance is the amount you pay in the first year to purchase and maintain coverage. While the initial premium amount will not always be the same as subsequent premiums, it is usually higher due to the administrative costs of setting up a new policy and/or the underwriter's assessment of the initial risk of the policyholder.
The size of your first year premium will depend on a number of factors, including your age, gender, health and lifestyle, as well as the type of life insurance you opt for. Generally, the younger and healthier you are, the lower your premiums will be.
Your first year premium can be paid as a one-time lump sum payment, or you can choose to pay it on a monthly, quarterly or annual basis.
If you decide to switch to a different life insurance policy after your first year, you will most likely receive a refund of your premiums if you are within the free lock-in period.
It’s important to shop around to make sure you’re getting the best rate possible on your life insurance policy. Be sure to compare different insurance policies, their premiums and claims process before deciding on a policy. You can also use online comparison tools to compare different plans and get an idea of which one might be best for you.
Hope this helps!