Mode of Premium specifies:

Mode of Premium specifies:

• A. The amount of premium
• B. The frequency of premium payments and to whom payments are made
• C. The investment options for the premiums
• D. The beneficiary designation

Answer: (B)

Mode of premium refers to how payments for the policy are made over time. It describes the payment cadence (monthly, quarterly, semiannual, annual) and where those payments go (directly to the insurer or through a designated intermediary). This choice mainly affects budgeting and cash flow, and may sometimes influence small discounts or charges for more or less frequent payments. It does not set the dollar amount of the premium itself—that comes from the policy features and underwriting—as well as it doesn’t involve investment options or who is named as the beneficiary.

Mode of premium refers to how payments for the policy are made over time. It describes the payment cadence (monthly, quarterly, semiannual, annual) and where those payments go (directly to the insurer or through a designated intermediary). This choice mainly affects budgeting and cash flow, and may sometimes influence small discounts or charges for more or less frequent payments. It does not set the dollar amount of the premium itself—that comes from the policy features and underwriting—as well as it doesn’t involve investment options or who is named as the beneficiary.