Advance Premium


DEFINITION of 'Advance Premium'

The initial premium paid to bind an insurance policy for a given period of time. The most commonly known use of the term "advance premium", is with respect to fluctuating insurance payments, such as payroll-based policies, where the actual amount due is not known until after the fact.

BREAKING DOWN 'Advance Premium'

Advance premium can also refer to pre-paid premiums, where the policyholder makes a premium payment before it is due.

  1. Earned Premium

    The amount of total premiums collected by an insurance company ...
  2. Premium Income

    1. In investing, income that is earned through the sale of an ...
  3. Advance Premium Mutual

    A mutual insurance company that operates as an advance premium ...
  4. Advance Premium Fund

    Insurance companies who receive advance premiums must account ...
  5. Adjustable Premium

    An insurance premium that can move up or down over time based ...
  6. Premium

    1. The total cost of an option. 2. The difference between the ...
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