Insurance paid in installments

This system allows you to make several periodic payments towards a premium that, in principle, should be paid in advance and in a single payment

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29.Nov.2021

Insurance companies are offering their customers increasingly more benefits. One of these, especially in this difficult time of crisis, is the possibility of splitting insurance premium payments.
This system allows you to make several periodic payments towards a premium that, in principle, should be paid in advance and in a single payment.

Better planning

Although this option is not really a savings measure as such, it can help us to plan our expenses much better, which is not a bad thing at the beginning of the new year, when you will no doubt be preparing your budget. However, it is important that you understand the company’s conditions: remember that some of them include bonuses when the payment is made in a single installment and perhaps it is not worth splitting the cost; others include a surcharge depending on the type of installment you opt for and many others allow you to split the cost without applying any type of increase. Also bear in mind that, sometimes, the price of the policy must be at least a certain amount before you can request payment in installments.

Fixed-term contract

Paying in installments is undoubtedly a very convenient option for people who cannot afford to pay all at once. However, it is important to emphasize that this does not imply the splitting of the insurance, in other words, the insured party cannot cancel the policy whenever they wish, at the end of any of these payments, but only at the expiration of each annuity. In other words, the insured acquires a commitment to remain with the company until they finish paying the annual installments into which the policy has been divided (monthly, quarterly, half-yearly, etc.).

Another advantage that the insurance companies offer is the possibility of grouping the payment of the entire portfolio of policies contracted by the different members of the family unit into a single monthly bill, as long as they appear as policyholders and are identified in the company.

As you can see, the insurance sector is trying to make things easier for you in terms of financial planning in the new year. Plan and make decisions.

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