Annualized premium is the total amount paid in a year’s time to keep the life insurance policy in force. The annualized premium amount of a life insurance policy does not include taxes and rider premiums.
When you buy a life insurance policy, you can choose the premium paying mode/ frequency like monthly, quarterly, half-yearly, or yearly. The annualized premium is the addition of all the premiums paid in every payment frequency in a policy year.
Mr. Arun purchased a term insurance policy for which he has to pay ₹1,000 every month excluding tax. So the annualized premium of his term insurance policy is ₹1,000 * 12 = ₹12,000.Back