Date of last premium

The schedule of the policy shows date of last premium also. Date of last premium is available by deducting one ‘mode’ from the date of maturity (in the case of policies where premiums are payable during the term) or from the last date of premium payment period (in the cases where premium is payable for a period less than the term). Premium is always paid in advance. Premiums are payable in yearly or half yearly or quarterly or monthly mode. So if the date of commencement of the policy is 10^th August 2013   and the term is 10 years the policy will mature on 10^th August 2023. The date of last premium will be 10^th August 2022 (if it is yearly mode), 10^th February 2023 (in case of half yearly mode), 10^th May 2023 (in case of quarterly mode) and 10^th July 2023 in case the mode is monthly. If the term of the policy is 15 years, premium paying term is 12 years and assuming that the date of commencement is 10^th August 2013 the date of last premium will be 10^th August 2024 (yearly), 10^th February 2025 (half yearly), 10^th May 2025 (quarterly) and 10^th July 2025 (monthly mode). In single premium policies date of last premium payment is irrelevant as the company has received all premiums already.

Key words:

Schedule of policy
Last premium
Single premium
Yearly mode