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Can you deposit the insurance premium in advance?

Updated: 8/17/2019
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11y ago

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At lic u can pay advance premium for the next 5 years in advance at concessional rates. If the advance premiums falling in the next financial years, you will get discount of 5% per year upto 5 year advance premiums--i.e. For the 5th year advance premium u will get discount upto 25 %. Maximum allowed is only 5 advance premiums or 5 years excluding the existing financial year premium. First u have to pay the existing fy premium without discount and then u can pay for the next 5 fy prm. With discount as said above. So u get a chance to pay 6 premiums altogether. By this u are earning 5 % interest in advance which is equivalent to 8% rd if u try calculation. Important thing is u r saving money, u will be given only advance prm. Receipt and after accounting on that that dates u will be provided with regular prm receipt after accounting. Only after accounting on that that years u will be eligible for it rebates. I am a new agent, only 2 years old in lic agency and i hope that i have cleared all your doubts with the knowledge available with me.

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Q: Can you deposit the insurance premium in advance?
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What is Advance Premium Deposit in Insurance Company?

An Advance Premium Deposit account is a feature of a policy offered by a Life Insurance company. Think of it as a savings account, where you're free to put in money and take out money. Your life insurance premium will automatically be paid from that account, so that's one less hassle you have to worry about. You get interest on your money, so that's nice. Often you're only allowed to deposit up to the sum of all future premiums. See http://www.americansavingslife.com/policy-sales/advance-premium-deposit-(apd) for an example of one company's advance premium desposit account and read what they have to say about it.


Insurance premium paid in advance Is it a accrued expenses?

No, if Insurance premium is paid in advance then it is a Prepayment - current asset.


What is insurance premium paid in advance called?

Prepayment of the premium before it is due.


Where can one learn more about fdic insurance?

You can learn more about FDIC insurance at the website fdic.gov/deposit/. This website allows you to access information about the FDIC's risk-based premium system and the deposit insurance reform legislation.


What is the journal entry for advance insurance premium paid in cash?

prepaid insurance a/c..........dr. To insurance a/c


How much money is recommended to have for deposit when opening a single premium life insurace plan?

The deposite required for thtse single premium life insurance plan is not fix. you might have to check the which insurance comply you are getting it from its depents on that


How does no deposit car insurance work?

The cost of the basic premium is cut into nine or twelve equal payments that are to be paid every month for that amount of time. And no deposit is ever required when you have this type of contract with the Insurance company you choose to use for your car insurance needs.


What is an advance deposit?

and advance deposit is money you place with a retailor to put towards your final price with the retailor


What does insurance premium mean?

The premium is the cost that you must pay to have the insurance.


What are the benefits of joining the Federal Deposit Insurance Corporation?

The Federal Deposit Insurance Corporation (FDIC) is an American government insurer that guarantees deposit accounts in participating banks and thrifts in an amount up to $250,000. This coverage guarantees that depositors will not lose their savings up to the insured amount should the bank fail. While the banks pay a premium to the FDIC for this insurance, it is to their benefit as many individuals, organizations and businesses will not deposit funds with an institution that is not FDIC insured.


What is unexpired expense?

those expenses which have been paid in advance and whose benefit will be available in future are called unexpired or prepaid expenses. e.g. insurance premium


What is the definition of a single premium immediate annuity?

Single premium immediate annuity is when one gives an insurance company an upfront payment or deposit and they straight away begin to pay you a monthly income. One can get them from a number of financial service companies.