What is the full form of WFYP in Insurance?
The WFYP full form in insurance is Weighted First Year Premium. This generally refers to the method used to calculate the insurance amount for insurance agents and brokers on the basis of the premiums that are generated from the new policies that are sold within the first year on a monthly, quarterly, or annual basis.
Significance of WFYP in Insurance:
WFYP refers to the grace period that the insurance company offers to its policyholders. This grace period generally occurs after the due date of the premium has passed. During this grace period, the policyholders can comfortably make their premium payment, without running the risk of cancellation of the policy.
WFYP dynamics:
The Grace Period of a WFYP or its duration will be based on the insurance company and its policy terms. The range of common grace periods is 15 days through one month. If the payments are made during this period, the policy is said to remain in force. If the policyholder fails to make payment during this period, the policy is said to be terminated or lapsed. They might lose the insurance coverage benefits that are associated with the policy.