What term describes the manner or frequency that the policyowner pays the policy premium?

The term that describes the manner or frequency that the policyowner pays the policy premium is referred to as "Premium Mode." This term specifically addresses how often the premium is paid, which can be on an annual, semi-annual, quarterly, or monthly basis. Each of these options represents a different mode of payment and can affect the total cost of the insurance over time. For instance, annual payments might offer a lower total premium compared to monthly payments, which can include a finance charge.

Understanding the premium mode is crucial as it directly impacts the policy's maintenance and can influence the policyholder’s budget. Policyholders need to choose a mode that aligns with their financial situation and payment preferences.

The other terms listed do not describe the payment frequency: the grace period pertains to the time allowed for premium payments before a policy lapses, the incontestability clause refers to the time limit on the insurer's ability to contest a policy after it has been in force, and a policy loan allows the policyholder to borrow against the cash value of the insurance policy. Each of these concepts relates to life insurance, but only "Premium Mode" refers directly to how and when premiums are paid.