What characteristic defines a fixed premium in an insurance policy?

A fixed premium in an insurance policy is characterized by its stability over the life of the policy. This means that the premium amount does not change regardless of factors such as the insured's age, health status, or market conditions. It remains constant and level for the duration of the contract, providing policyholders with predictability in managing their budgets and expenses.

This fixed nature of the premium allows individuals to plan their finances without worrying about unexpected increases in their insurance costs. It contrasts with other types of premiums that may fluctuate due to varying factors, which could lead to financial strain if premiums increase significantly over time. In summary, a fixed premium ensures consistency and security in premium payments throughout the lifespan of the insurance policy.