What is premium refund in SAP FS-PM - Policy Management?

SAP Term: premium refund

• Component: FS-PM

• Component Name: Policy Management

• Description: A special ruling that provides for the reimbursement of paid premiums in the event of death.

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• Key Concepts: 
  Premium refund is a feature of the SAP FS-PM Policy Management component that allows customers to receive a refund of their premium payments if they cancel their policy before the end of the policy period. The refund amount is calculated based on the remaining time left in the policy period and the amount of premium paid. 
  
  How to use it: 
  To use the premium refund feature, customers must first cancel their policy. Once the policy is cancelled, they can then request a refund of their premium payments. The refund amount will be calculated based on the remaining time left in the policy period and the amount of premium paid. The customer will then receive a refund check or direct deposit from the insurance company. 
  
  Tips & Tricks: 
  It is important to note that not all insurance companies offer a premium refund feature. Customers should check with their insurance company to see if this feature is available before cancelling their policy. Additionally, customers should be aware that some insurance companies may charge a fee for processing the refund request. 
  
  Related Information: 
  For more information about the premium refund feature in SAP FS-PM Policy Management, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/FS-PM/2020/en-US