You pay regular premiums and in return the insurance company will pay out a lump sum.

你定期交纳保险费，作为回报，保险公司会一次性付给你一笔钱。

《柯林斯英汉双解大词典》

If cashed out, proceeds beyond the total of premiums paid would be subject to regular income tax, though that's usually a small amount in such small policies.

FORBES: Old but still kicking

Car insurance premiums fell in the third quarter of the year, according to a regular survey by the AA motoring organisation.

BBC: Car insurance premiums fall says AA