- A term insurance policy where premiums are paid in advance. Pre-paid insurance terms are generally for one-year periods, and barring any claims are available with renewable terms, but level premiums are not guaranteed.
lump sum premium insurance, upfront insurance, single premium insurance
Related Terms and Acronyms
- Conversion Privilege — Definition,
- An option where an insurance company is required to update, renew or convert an insurance policy with level premiums at the end of the policy's term without a medical exam.
- Fixed Premium — Definition,
- Insurance or annuity premiums that stay level for a specific period of time.
- Insurance Policy — Definition,
- A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
- Insurance Renewal — Definition,
- Extending the term length on an insurance policy.
- Level-Premium Insurance — Definition,
- Insurance where the premiums the policyholder pays are guaranteed to remain the same for an agreed upon period of time.
- Premium — Definition,
- A payment made to an insurance company for insurance coverage.
- Re-entry — Definition,
- The option to renew coverage at the end of a term, generally with level premiums.
- Renewable Term — Definition,
- An insurance policy that is can be renewed without needing the policyholder to re-qualify for insurance coverage.
- Single Premium Deferred Annuity (SPDA) — Acronym,
- A deferred annuity funded with a single payment.
- Single-Premium Life Insurance — Definition,
- Life insurance where all premiums are paid up front in a single lump sum payment.
- Travel Insurance — Definition, Very Important,
- Insurance that covers a number of events that can occur when an individual is travelling out of the province or country.