What does "payment mode" refer to in life insurance?

"Payment mode" in life insurance refers to the frequency with which premium payments are made. This can include options such as monthly, quarterly, semi-annually, or annually. Each mode may have different implications for the policyholder, including how much they pay in total premiums and how often they need to budget for those payments.

Selecting a specific payment mode can impact cash flow and financial planning for the policyholder, as well as potentially affect the overall cost of the insurance. Often, insurers will provide discounts for choosing less frequent payment schedules, such as annual payments, compared to making monthly payments. Understanding the payment mode is crucial for policyholders to manage their insurance costs effectively.