Extra Premium (or Flat Extra)

An extra premium charge that is applied to a life insurance policy in the event of adverse risk factors. There are two types of Flat Extra premiums: Temporary Flat Extra and Permanent Flat Extra. The Temporary Flat Extra is applied when there is a risk factor such as a cancer diagnosis and the amount is charged for a specified number of years and then removed. A Permanent Flat Extra is applied when there is an occupational or avocational risk.