What describes Periodic Premiums?

What describes Periodic Premiums?

• A. Periodic Premiums: Continuous premiums paid into the contract.
• B. Premiums are paid as a single upfront payment.
• C. Premiums may be paid irregularly.
• D. Premiums are paid only at policy maturity.

Answer: (A)

Periodic premiums mean paying at regular intervals over the life of the policy, rather than all at once. This keeps the contract in force as long as those payments continue, with amounts that can be scheduled monthly, quarterly, or yearly. That’s why the description of periodic premiums as continuous premiums paid into the contract is the best fit. It contrasts with a single premium (paid upfront), irregular payments (not on a set schedule), or payments due only at maturity (which wouldn’t fund the policy during its term).

Periodic premiums mean paying at regular intervals over the life of the policy, rather than all at once. This keeps the contract in force as long as those payments continue, with amounts that can be scheduled monthly, quarterly, or yearly. That’s why the description of periodic premiums as continuous premiums paid into the contract is the best fit. It contrasts with a single premium (paid upfront), irregular payments (not on a set schedule), or payments due only at maturity (which wouldn’t fund the policy during its term).