45. Generally, in life insurance policies, premiums can be collected under all of the following modes EXCEPT
Answer: D
Premiums can be collected under all modes EXCEPT bi-monthly.
Life insurance policies typically allow for premium payments to be made annually, quarterly, and semi-annually, but not bi-monthly. Therefore, bi-monthly is the option that does not fit within the standard modes of premium collection.
A) annually.
Annually is a common premium payment mode in life insurance policies. It allows policyholders to pay their premiums once a year, often resulting in lower administrative costs for the insurer and possibly a discount for the policyholder.
B) quarterly.
Quarterly is another accepted mode for paying premiums in life insurance. This option allows premiums to be paid four times a year, making it more manageable for some policyholders compared to an annual payment.
C) semi-annually.
Semi-annually is also a standard mode for premium collection in life insurance. Payments are made twice a year, providing flexibility for policyholders who may prefer not to pay annually but want to avoid the frequency of quarterly payments.
D) bi-monthly.
Bi-monthly, which implies payments made every two months, is not a standard mode for premium collection in life insurance policies. This frequency is less common and typically not offered as an option by insurers, making it the correct answer in this context.
Conclusion
In summary, while annually, quarterly, and semi-annually are widely accepted modes of premium payments in life insurance, bi-monthly does not conform to standard practices and is therefore the exception. This distinction underscores the importance of understanding the available payment options when considering life insurance policies.