Insurance companies offer various types of discounts including one called a paid in full discount. A paid in full discount is given when the entire premium amount is paid, it will lower the premium amount and and is a good incentive for those who can afford to pay the full premium. A paid in full discount is a good way to market an insurance policy to a prospective insured.
Insured’s that pay the entire premium for an insurance policy usually receive what is called a paid in full discount from the insurer. This is a discount that is given because the entire premium for a policy is collected all at once. Insurers provide this discount because it is one less policy that they need to send a bill for and process a payment. This discount benefits the insured as well as the insurer whenever an insurance premium is paid in full. This discount is usually available when the full premium is paid for any type of policy. This includes common policies such as an automobile or a home policy but can be available for a life insurance policy as well.
Discounts on an insurance policy are designed to lower the amount of the premium being paid and a paid in full discount is no different. The amount of the discount can vary from insurer to insurer but it usually results is a significant savings on the cost of the policy. Many insurers began to use a paid in full discount because when a policy is paid in full every year they do not need to worry about a late payment or a payment being missed. The benefit to the insured is that they do not need to worry about sending in a payment and having their policy cancel because of non payment of the premium. A paid in full discount is a good way to go to lower the cost of an insurance policy.
A paid in full discount is a great incentive for those who can afford to pay the full premium amount for their policy. Many insurance companies either have begun or have been accepting premium payments made via a credit card. Many people have there home and automobile insurance with the same insurer which makes paying the premium only once is convenient. Also, insurers offer a multi-policy discount for having multiple policies in force. This discount combined with a paid in full discount can lead to a significant saving on the premium being paid for both policies. If an insured can afford to pay the full premium amount a paid in full discount acts as an added incentive.
A paid in full discount is a good way for an insurance company to market their products to a potential insureds. Many times an insurance will suggest paying the premium in full to receive a paid in full discount. Other times the discount can be used as a marketing tool to advertise the benefits of their company.