Mode

‘Mode’ of premium payment is also an item shown in the schedule of a policy. Premium may be paid as ‘Single premium’ or as ‘Yearly premium’. However many Life insurers allow further convenience to the customer by allowing him to pay the premium in half-yearly or quarterly or monthly mode. If premium is deducted from the monthly salary of the policyholder the mode is called ‘SSS’ (salary savings scheme) and not monthly. In ‘monthly mode’ the policyholder pays the premium directly every month (not through employer).

Key words:

Life insurer
Schedule of the policy
Mode of premium payment
Salary Savings Scheme