9. 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 annually, quarterly, or semi-annually. However, bi-monthly is not a standard mode of premium collection in life insurance policies.
A) annually.
Annual premium payment is a common mode in life insurance, allowing policyholders to pay their premium once a year. This frequency can often result in lower overall premium costs compared to more frequent payment schedules.
B) quarterly.
Quarterly payments are also a standard option for life insurance premiums, enabling policyholders to manage their cash flow by spreading payments across the year. This mode is widely accepted and utilized in the industry.
C) semi-annually.
Semi-annual payments are another legitimate mode for collecting premiums in life insurance. This allows policyholders to make payments twice a year, striking a balance between annual and quarterly payments.
D) bi-monthly.
Bi-monthly payment is not a standard mode of premium collection in life insurance policies. Unlike the other options, it is not commonly offered by insurers, which makes it the exception in this context.
Conclusion
The correct answer is bi-monthly, as it is not a recognized or standard method for collecting life insurance premiums. All other options—annually, quarterly, and semi-annually—are widely accepted modes that reflect common practices in the insurance industry.