68. 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.
In life insurance policies, premiums are typically collected annually, quarterly, and semi-annually, but not on a bi-monthly basis.
A) annually.
Collecting premiums annually is a common practice in life insurance policies, allowing policyholders to pay once a year for their coverage. This option is widely accepted and convenient for many individuals.
B) quarterly.
Quarterly premium payments are also a standard mode in life insurance, allowing policyholders to spread their payments across the year in four installments. This option is beneficial for those who prefer more frequent payment intervals.
C) semi-annually.
Semi-annual premium collection is another recognized payment mode in life insurance policies. This method allows policyholders to pay twice a year, which can be easier to manage compared to annual payments for some individuals.
D) bi-monthly.
Bi-monthly payment collection is not a standard mode in life insurance policies. While it implies making payments every two months, this frequency is not typically offered by insurance companies, making it the correct answer for this question.
Conclusion
The correct answer highlights that bi-monthly is not a recognized mode of premium collection in life insurance policies. In contrast, annual, quarterly, and semi-annual payments are standard options that insurers commonly provide to policyholders. Thus, the distinction of bi-monthly as the exception is clearly supported by the norms of the insurance industry.