Definition, Meaning & Synonyms

annual-premium

Noun

/ˈæn.ju.əl ˈpriː.mi.əm/

Definition

The amount of money paid each year for an insurance policy or a financial product, usually calculated based on various factors including risk assessment and coverage level.

Examples

Many homeowners choose to pay their annual premium in one lump sum for convenience.
It’s important to review your financial situation before deciding on the amount of your annual premium.
Some policies allow for a monthly payment plan, but paying the annual premium can often save you money.