This usually refers to a single premium that covers a specific risk for a specific period of time. For example, in pricing unit-linked contracts, a company will usually cost for death or sickness cover by applying a monthly risk premium to the appropriate amount at risk in each month.

The term is also used in reinsurance. Here, the risk premium is the amount required to cover the cost of the death sum at risk. It is basically of the form (SA - V)qx, plus expenses where SA = sum assured, V = reserve and qx = probability of dying for a life aged x.

A form of reinsurance called risk premium reinsurance involves a payment only of the risk premium to the reinsurer, and the payment of the sum at risk to the direct writer on the death of the policyholder.