Which Of The Following Is The Least Expensive Mode Of Premium Payment?

How often do you pay a premium?

This is the amount you pay for the policy.

Policyholders may choose from a number of options for paying their insurance premiums.

Some insurers allow the policyholder to pay the insurance premium in installments—monthly or semi-annually—while others may require an upfront payment in full before any coverage starts..

What is policy term and premium payment?

Premium paying term is the total period (number of years or months) for which a policyholder has to pay premium, for a life policy. Policy term is the period within which a policy remains active and offers protection/benefits.

What are the 7 types of insurance?

7 Types of Insurance are; Life Insurance or Personal Insurance, Property Insurance, Marine Insurance, Fire Insurance, Liability Insurance, Guarantee Insurance. Insurance is categorized based on risk, type, and hazards.

What premium payment mode is most expensive?

quarterlyThe “mode” is simply the frequency of premium payments, with the options being annual, semi-annual, quarterly, and monthly. The least expensive payment mode is annual and the most expensive is quarterly (sometimes monthly, but this varies by company).

Which is the oldest modes of payment?

1. Cash Payment. This is one of the oldest modes of payment. In this case, the buyer pays money in the form of notes and coins to the seller.

What is premium limited pay?

Limited Payment Option A limited premium payment plan is a plan where you pay the premium for a shorter span of time and enjoy the benefits of an insurance cover for a longer time.

What type of payment is a bank transfer?

Bank transfer is the general term used to cover a wide range of credit transfers, including cash payments, giro-payments, and wire transfer to local banks. They are the most common form of cashless consumer payments in most countries within the European Union and Asia–Pacific (references: www.ecb.org and www.bis.org).

What is the difference between single premium and regular premium?

In the single premium plan, an insurer gets coverage for full term by paying premium amount in a lumpsum. Whereas, in regular premium ULIP plan, an insurer needs to pay premiums in intervals such as monthly, quarterly, half-yearly or annually for the policy.

How are insurance premiums calculated?

The premium for OD cover is calculated as a percentage of IDV as decided by the Indian Motor Tariff. Thus, formula to calculate OD premium amount is: Own Damage premium = IDV X [Premium Rate (decided by insurer)] + [Add-Ons (eg. bonus coverage)] – [Discount & benefits (no claim bonus, theft discount, etc.)]

What is a premium account?

Premium bank accounts, also known as packaged or sometimes gold bank accounts, offer the same service as the free current accounts on the market, while adding a few added extras in return for a monthly fee. … You can compare a range of premium accounts to see if the benefits outweigh the monthly fee.

What are the types of payment mode?

Payment method typesCredit Cards. As a global payment solution, credit cards are the most common way for customers to pay online. … Mobile Payments. … Bank Transfers. … Ewallets. … Prepaid Cards. … Direct Deposit. … Cash.

What premium means?

Definition: Premium is an amount paid periodically to the insurer by the insured for covering his risk. Description: In an insurance contract, the risk is transferred from the insured to the insurer. For taking this risk, the insurer charges an amount called the premium.

What is the mode of premium payment?

The frequency or period of your payments depends on your mode of premium. Most insurance providers offer several modes of premium, the most common of which come annually, semi-annually, quarterly, or monthly. … Your mode of premium payment determines the frequency with which payments are made.

What are the types of premium?

Modes of paying insurance premiums:Lump sum: Pay the total amount before the insurance coverage starts.Monthly: Monthly premiums are paid monthly. … Quarterly: Quarterly premiums are paid quarterly (4 times a year). … Semi-annually: These premiums are paid twice a year and are way cheaper than monthly premiums.More items…•

What is a mode of payment?

Means by which a payment is made, such as cash, check, or credit card. Frequency with which a sum is paid, such as monthly, quarterly, or annually.

What is a annual payment?

Annual Payments means, with respect to any Material Contract, (x) the total amount of the payments expected to be paid or received, as applicable, under such Material Contract (y) divided by the total number of years of the term of such Material Contract.

What is a level premium?

Level-premium insurance is a type of life insurance in which premiums stay the same price throughout the term, while the amount of coverage offered increases.