What does 'premium frequency' refer to?

Premium frequency refers to the interval at which premiums are paid. This concept is important in insurance as it influences the payment structure and the overall cash flow for both the insurer and the policyholder. Different policies may offer premium payment options such as monthly, quarterly, semi-annually, or annually. Choosing a specific premium frequency can affect the total amount paid in premiums over the life of the policy, potential discounts for paying annually, or convenience for budget management for the policyholder. Understanding premium frequency allows clients to select options that best suit their financial situation and preferences regarding cash flow management.