Weekly Premium Insurance
Definition - What does Weekly Premium Insurance mean?
Weekly premium insurance is an insurance policy for which the insured pays on a weekly basis. It is usually a life insurance policy, although any type of insurance that bills weekly could be considered weekly premium insurance. Because these policies bill more often than those that bill monthly or annually, each premium payment is less.
Insuranceopedia explains Weekly Premium Insurance
Weekly premium insurance policies were popular during the late 1800s and early 1900s. Insurance companies marketed these policies to workers in the manufacturing industry. They matched up the weekly pay schedule with the weekly billing for convenience. Moreover, the low salaries made it hard to budget for the larger premium payments on policies that billed less frequently.
As salaries increased, more people could afford to make larger and less infrequent insurance payments. Most insurance companies discontinued the weekly premium feature because fewer people needed it, and it became a hassle to manage for both the insurance company and policyholders.