Pre-paid Insurance

Definition

  • 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.

Synonyms
upfront insurance, lump sum premium 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.
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