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The initial premium is the first payment made by a policyholder when purchasing an insurance policy. This amount is typically required to activate the coverage and may vary based on factors such as the type of insurance, the coverage amount, and the policyholder's risk profile. Subsequent premiums are then paid at regular intervals to maintain the policy.

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∙ 1y ago

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Related Questions

You elected COBRA coverage and want to know how many days you have to pay the initial premium.?

30 days.


What is indeterminate premium life insurance?

Indeterminate premium life insurance is a type of whole life insurance that specifies two premium rates: a guaranteed maximum, and a lower rate you actually pay. The lower premium level is for a set period of time. Then the company establishes a new rate that may be higher or lower than the initial premium. But your premium can never be more than the guaranteed maximum.


What is a down payment on car insurance and how does it affect my overall premium cost?

A down payment on car insurance is an initial payment made when purchasing a policy. It is typically a percentage of the total premium cost. The down payment affects your overall premium cost by reducing the amount you owe upfront, but it does not impact the total cost of the policy.


What is graded premium life insurance?

Graded Premium Life is actually Graded Premium Whole Life Insurance coverage under which the initial premiums are less than normal for the first few years of the policy, then the premiums gradually increase each of the next several years, until they become level (or the same) for the duration of the life insurance policy.


What do you call a transaction in which the cash surrender value of a replaced insurance policy is used as the initial premium for a new policy?

paid up. Or in some cases could be a conversion.


How can health insurance be cancelled when it is not open enrollment?

Many reasons. Most commonly, for not paying the monthly premium on time (or at all). Another reason could be falsifying information on the initial application for insurance.


What is the formula for annual premium?

Annual Premium= Annual Base Premium * Driver-Rating Factor To get annual base premium the formula is... Annual base Premium= Liability Premium + Collision Premium + Comprehensive Premium.


How do you get no-down drywall liability insurance?

I doubt you can get any policy without some money down.AnswerNo company is going to provide you a commercial general liability policy without collecting your initial premium payment.


How is the initial home insurance premium paid?

These days it is typically paid by cash, check or charge.


How would you use premium in a sentence?

"These sausages are Premium grade" Premium=Grade A


Can you add money at any time to your annuity?

Whether you can add money to your annuity at any time depends on the type of annuity you have. For flexible premium annuities, you can typically make additional contributions as desired. However, with single premium annuities, you generally cannot add more funds after the initial investment. Always check the specific terms and conditions of your annuity contract for details.


What is target premium?

Target premium is the amount that the agent's commission is based off of. It is neither the planned premium or minimum premium to keep the policy in force. Sometimes called the "commissionable premium."

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