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.
Life insurance premiums are typically collected on an annual, quarterly, or semi-annual basis. Bi-monthly is not a standard mode of premium collection in life insurance policies.
A) annually.
Collecting premiums annually is a common practice in life insurance policies, allowing policyholders to pay once a year, which can often result in lower overall costs compared to more frequent payment modes.
B) quarterly.
Quarterly premium payments are also a standard option for life insurance policies, enabling policyholders to make payments every three months, which can help with budgeting for insurance costs throughout the year.
C) semi-annually.
Semi-annual premiums are another accepted payment option within life insurance policies, allowing policyholders to pay twice a year, providing flexibility in payment frequency that many find manageable.
D) bi-monthly.
Bi-monthly is not a recognized mode for collecting life insurance premiums. This term typically refers to an event occurring every two months, which is not aligned with the standard payment periods accepted in life insurance practices.
Conclusion
The correct answer is bi-monthly, as it does not conform to the typical premium collection modes of annually, quarterly, or semi-annually. Each of the other options represents common practices in the insurance industry, thereby confirming that bi-monthly is the outlier in this context.