Annual Insurance Policy

Published: | Updated: October 3, 2016

Definition - 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.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this: