Advance Premiums

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Advance Premiums Also, known as pre-paid premiums It is an initial premium paid to bind an insurance policy before the specific date of payment, when a policy has been processed, prior to the effective date. If you make advance payments, you won't have the problem of delayed payments, and that means you avoid policy lapses. Advance premium is done to bind the insurer to the insured. The adjustments or the actual premium value comes out in the notice for the second premium payment. This is also called as the deposit premium. Paying premiums in advance helps the customer plan and budget accordingly for this purpose. Setting aside premiums in advance ensures that the policy remains active due to the timely payment of the premium. Paying your premium in advance can help you avoid this problem altogether. Simply put, this is how it goes. You could enjoy discounts on advance payments. You may be in for some great discounted benefits. Some insurance regulators proposed that insurers should offer discounts on renewal premiums paid in advanced. The reason customers wait to pay their insurance premium on the due date not in advanced is the lack of benefits extended to policyholders for doing so, which automatically deters the customer from making advance payments. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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