Which of the following best defines the term 'premium' in life insurance?

The term 'premium' in life insurance is best defined as the amount paid by the policyholder for coverage. This payment is made regularly, typically on a monthly, quarterly, or annual basis, and it is what keeps the insurance policy active. The premium is calculated based on various factors, including the insured individual's health, age, and the amount of coverage chosen. It serves as compensation to the insurance company for the risk it assumes when providing life insurance coverage.

The other options pertain to different aspects of life insurance: the total sum payable on the policyholder's death refers to the death benefit, which is the payout to beneficiaries; the rate at which benefits are accumulated does not directly relate to the premium but rather to the policy’s cash value or growth, if applicable; and the commission earned by the insurance agent is a separate financial arrangement that compensates agents for selling insurance policies, not a description of the premium itself. Thus, the definition highlighting the payment made by the policyholder directly aligns with the fundamental concept of a premium in the life insurance context.