What is meant by "premium payment mode"?

The term "premium payment mode" refers specifically to how often premiums are paid for an insurance policy. This can vary from monthly to quarterly, semi-annually, or annually, and it affects both the convenience of payment and the total cost of the insurance over time. Choosing a premium payment mode involves considerations like cash flow, budgeting, and sometimes even potential discounts offered for less frequent payments (such as annual payments).

Understanding premium payment modes is crucial for policyholders because it directly impacts their financial planning and how they manage their insurance costs. For example, while more frequent payment options may be easier to fit into a monthly budget, they can sometimes lead to higher overall costs due to additional administrative fees.