Weekly Premium Insurance
What Does Weekly Premium Insurance Mean?
Weekly premium insurance is an insurance policy where the insured makes payments on a weekly basis. It is typically a life insurance policy, although any insurance type with weekly billing can fall under this category. Since payments are made more frequently than with monthly or annual policies, each premium payment is smaller.
Insuranceopedia Explains Weekly Premium Insurance
Weekly premium insurance policies gained popularity during the late 1800s and early 1900s, primarily targeting workers in the manufacturing industry. Insurance companies aligned the weekly billing cycle with workers’ weekly pay schedules for convenience. The smaller, more frequent payments also accommodated the lower wages of the time, making it easier for individuals to budget for insurance.
As wages increased, more people could afford larger, less frequent premium payments. Consequently, most insurance companies phased out the weekly premium option. It became less necessary for policyholders and more cumbersome to manage for both insurers and customers.
