Single premium vs regular premium

Single premium insurance policies are those on which the customer pays a single one-off payment. The insurer gets an up front payment for covering a continuing risk over a period of time. This contrasts with regular premiums which give the insurers an income stream in return for covering the risk. General insurance is paid with regular premiums but single premiums are not uncommon in life assurance.

Annual premium equivalent or PVNBP can be used to measure insurers' new business using a single number that combines regular and single premium business.