Life License Qualification Program (LLQP) Practice Exam

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Prepare for the Life License Qualification Program exam. Use flashcards and multiple-choice questions with detailed explanations. Boost your readiness for this essential test!

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Which policy feature allows a policyowner to choose the frequency of premium payments?

Consideration
Payor benefit
Premium Mode
Assignment provision

The correct answer is: Premium Mode

The feature that allows a policyowner to choose the frequency of premium payments is known as the Premium Mode. This option provides flexibility in how frequently a policyholder can make their premium payments—whether monthly, quarterly, semi-annually, or annually. By selecting a premium mode, the policyowner can align their payment schedule with their financial situation or cash flow preferences, making it easier to manage their budget and maintain their policy. The consideration refers to the basis of the insurance contract, typically the required premium, and does not pertain to payment frequency. Payor benefit is an option designed to cover premiums in the event the policyowner becomes disabled or dies, but it does not relate to the frequency of payments. The assignment provision involves transferring ownership rights of the policy to another party, which is unrelated to how payments are made. Thus, the Premium Mode stands out as the feature that directly affects the schedule of premium payments.