Question

The initial premium for a life insurance policy is typically paid in what way?

A. The applicant mails it to the insurer after the policy has been approved.
B. It is typically obtained by the producer and forwarded to the insurer.
C. It is typically forwarded to the insurer by the applicant.
D. The producer pays it from any commissions received.

Answer 1

The initial premium for a life insurance policy is typically paid by the applicant and forwarded to the insurer. Various payment methods can be used to make the payment.

Step-by-step explanation:

The initial premium for a life insurance policy is typically paid by the applicant and forwarded to the insurer. Once the policy has been approved, the applicant can send the premium payment directly to the insurance company. This payment is usually made through various payment methods such as mailing a check, online transfer, or electronic payment.

For example, if John applies for a life insurance policy and it gets approved, he will be responsible for making the initial premium payment. He can choose to mail a check or make an online payment to the insurance company based on their preferred payment method.