Which term denotes the frequency with which the policyowner pays the premium?

Which term denotes the frequency with which the policyowner pays the premium?

• A. Delivery Receipt
• B. Cash on Delivery
• C. Mode
• D. Accumulate

Answer: (C)

Premium payment timing is described by the mode. The mode indicates how often premiums are paid—monthly, quarterly, semiannual, or annually. Choosing the mode affects the payment schedule and can influence the total cost due to administrative factors or discounts for paying less frequently. The other terms don’t describe how often premiums are paid: a delivery receipt is simply proof of delivery, cash on delivery isn’t a standard insurance term for premium frequency, and accumulate refers to building cash value within the policy, not the payment timing.

Premium payment timing is described by the mode. The mode indicates how often premiums are paid—monthly, quarterly, semiannual, or annually. Choosing the mode affects the payment schedule and can influence the total cost due to administrative factors or discounts for paying less frequently. The other terms don’t describe how often premiums are paid: a delivery receipt is simply proof of delivery, cash on delivery isn’t a standard insurance term for premium frequency, and accumulate refers to building cash value within the policy, not the payment timing.