Annual Insurance Policy
Updated: 09 June 2023
What Does Annual Insurance Policy Mean?
An annual insurance policy is a policy paid for by the year as opposed to by the month. Therefore, a policyholder who pays a yearly premium would receive one year of coverage. Annual insurance policies are offered for a wide variety of insurance products.
Insuranceopedia Explains Annual Insurance Policy
The benefit of annual insurance policies is that the policyholder only has to make one payment for a twelve-month period. This can be quite convenient when compared to making twelve payments for a monthly plan for the same length of time. Annual insurance policies are also convenient for insurers who only have to keep track of one payment per year. At the end of the policy year, the policyholder oftentimes has the option to renew or to let the policy expire.
Related Definitions
Related Terms
Related Articles
Farm Insurance: 9 Essential Policies to Know
Insurance Self-Service Portal: The Future of Customer Experience
Blockchain’s Impact on Transforming the Insurance Landscape
What Every College Student Should Know About Renters Insurance
Guidance for Nurses: Five Essential HIPAA Compliance Tips
Insuring Your Financial Future: the Crucial Role of Accounting in Insurance
Related Reading
Revealing the Most And Least Popular U.S. Insurance Companies
What Students Need to Know About Insurance Coverage During Internships
A Roadmap for Students Interested in the Insurance Industry
Strong Identity Verification in the Insurance Sector
How to Avoid Online Insurance Scams
How to Get Into the Insurance Industry With a Finance Degree