Whole Life Insurance Premium

 The periodic payment made on an insurance policy is also called premium. The insurance company receives the life insurance premiums from the policy owner and invests them to create a pool of money from which to pay claims, and finance the insurance company's operations. Contrary to popular belief, the majority of the money that life insurance companies make comes directly from life insurance premiums paid, as money gained through investment of premiums will never, in even the most ideal market conditions, vest enough money per year to pay out claims. Rates charged for life insurance increase with the insured's age because, statistically, a people are more likely to die as they get older.