Which term is used to describe the total amount of premiums paid over the life of an insurance policy?

The term that accurately describes the total amount of premiums paid over the life of an insurance policy is "Cumulative premium." This term encompasses all the premium payments made by the policyholder during the entire duration of the policy, illustrating the full financial commitment the insured has made toward maintaining the coverage.

Cumulative premium reflects the sum of all periodic premium payments that have occurred, providing a clear financial picture for both the policyholder and the insurer. It is an important figure in assessing the overall investment in the policy, as it not only illustrates the policyholder’s financial engagement but can also impact decisions regarding policy loans, surrender values, and potential dividends if the policy is a participating one.

The other terms do not specifically capture this totality of premium payments over the policy's lifespan. For instance, "premium history" typically refers to records of premium payments rather than a cumulative sum, while "accumulated value" often pertains to the cash value that accumulates in a permanent life insurance policy but does not equate to the total premiums paid. "Total premium," while similar sounding, does not adequately convey the essence of all premiums over time in the same established context as "cumulative premium."