Which two terms are directly associated with the premium in insurance?

In the context of insurance, particularly life insurance, the terms "level" and "flexible" are directly associated with the premium structure. A level premium means that the policyholder pays the same amount throughout the life of the policy, providing stability and predictability in budgeting for insurance expenses. This is particularly common in whole life insurance policies, where premiums remain constant.

On the other hand, a flexible premium allows for varying premium payments. This is often seen in universal life insurance, where the policyholder can adjust the amount of the premium paid based on their financial situation, giving them more control over their insurance costs.

The combination of these two terms – level and flexible – captures the different ways premiums can be structured and managed by the policyholders, which is fundamental to understanding how insurance premiums work.