Advance Premium: (noun) an upfront payment made for an insurance policy that provides coverage for a specific period of time. This payment is typically made in addition to regular premium payments and is used to secure coverage before the policy period begins.
An advance premium is a payment made in advance for an insurance policy. It is a common practice in the insurance industry for policyholders to pay their premiums in advance, typically on an annual or semi-annual basis. The advance premium is used to secure coverage for a specified period of time and is typically non-refundable, even if the policy is cancelled before the end of the coverage period. Advance premiums are governed by the terms and conditions of the insurance policy and are subject to state insurance regulations.
Tax Credit (APTC)
Q: What is Advance Premium Tax Credit (APTC)?
A: APTC is a tax credit that helps eligible individuals and families pay for health insurance premiums.
Q: Who is eligible for APTC?
A: Individuals and families with income between 100% and 400% of the federal poverty level are eligible for APTC.
Q: How do I apply for APTC?
A: You can apply for APTC through the Health Insurance Marketplace during open enrollment or a special enrollment period.
Q: How is APTC calculated?
A: APTC is calculated based on your income, family size, and the cost of health insurance in your area.
Q: How is APTC paid?
A: APTC is paid directly to your health insurance company to lower your monthly premium.
Q: What happens if my income changes during the year?
A: If your income changes during the year, you should report the change to the Health Insurance Marketplace. Your APTC may be adjusted based on your new income.
Q: What happens if I overestimate my income and receive too much APTC?
A: If you receive too much APTC, you may have to pay back some or all of the excess when you file your taxes.
Q: What happens if I underestimate my income and receive too little APTC?
A: If you receive too little APTC, you may be eligible for a tax credit when you file your taxes.
Q: Can I use APTC to pay for a plan outside of the Health Insurance Marketplace?
A: No, APTC can only be used to pay for health insurance plans purchased through the Health Insurance Marketplace.
Q: Is APTC available in every state?
A: Yes, APTC is available in every state.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March 2024.
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