Premium billing is the process by which an insurance company or agency invoices policyowners for premiums due on life insurance and annuity contracts. It includes generating statements or electronic notices, applying payment modes (annual, semiannual, quarterly, monthly), and processing payments received via check, EFT, credit card, or payroll deduction. Effective premium billing systems track due dates, grace periods, and failed payments, issuing reminders and lapse warnings as needed. Accurate billing is essential for maintaining coverage, complying with state notice requirements, and supporting persistency targets for carriers and distributors.

In daily operations, premium billing touches multiple teams-carrier billing departments, agency service staff, and advisors who answer client questions about notices and drafts. Agencies may help clients switch premium modes, set up automatic bank withdrawals, or coordinate list billing for employer groups. When bank accounts change or payments are missed, billing systems create alerts that prompt outreach before policies lapse. Advisors often review premium billing during policy reviews to ensure payments align with cash flow and planning goals. Clear communication about premium billing reduces confusion, late payments, and reinstatement requests.