What term describes how frequently a policyowner is required to pay their premiums?

The term that describes how frequently a policyowner is required to pay their premiums is "Mode." It refers to the frequency of premium payments, such as monthly, quarterly, semi-annually, or annually. The mode can significantly affect the total cost of the policy, as different payment frequencies can come with different premium amounts due to administrative costs and the time value of money.

For example, if a policy is set up for monthly payments, the policyowner will have smaller individual payments spread out over the year, while annual payments might result in a lower total premium. Choosing the appropriate mode can help budget for insurance expenses and manage cash flow effectively.

Other terms, like consideration, typically refer to the exchange of value in a contract, while a schedule might indicate a predetermined timeline of events or payments. A grace period is a time frame after a premium payment is missed during which the policy remains in force before a lapse occurs, but it does not define the frequency of payments.