Annualized Premium

Annualized premium refers to the total amount of money that an individual pays for insurance coverage over a period of one year. It is calculated by multiplying the monthly premium by 12, or by multiplying the quarterly premium by 4.

For example, if an individual pays ₹100 per month for term life insurance, the annualized premium would be ₹1,200.

It's important to note that in many types of insurance contracts, the annualized premium may be due upfront, at the beginning of the coverage period, or it may be paid in instalments, such as monthly or quarterly. Additionally, the annualized premium can also be adjusted based on factors such as the policyholder's age, gender, location, or other personal characteristics.

Some insurance policies also have additional or optional cost, which are called riders. The premium on these riders are typically added to the annualized premium.