Weekly Premium Insurance
What is 'Weekly Premium Insurance '
A type of financial protection where the payments that the insured makes in return for coverage are paid weekly. This type of insurance was introduced by Prudential in 1875 and was common in the late 1800s and early 1900s. At that time, insurers were unable to get insurance with monthly premium payments to catch on with consumers. The small weekly premium payments were designed to match up with workers' pay schedules and modest incomes.
BREAKING DOWN 'Weekly Premium Insurance '
Weekly premiums were a feature of industrial insurance, a type of life insurance product offered to workers employed in industrial jobs such as manufacturing. Insurance companies collected the premium payments by sending agents to people's homes. In the mid 1900s, the number of weekly premium insurance policies began to decline because rising incomes made larger and less frequent premium payments more affordable for many families.