If J chooses a monthly premium payment mode on his Whole Life insurance policy, what is true about the premium?

When J chooses a monthly premium payment mode on his Whole Life insurance policy, the gross premium ends up being higher than if he were to pay annually. This is because insurance companies typically charge a higher overall premium for more frequent payment options. This increase accounts for the administrative costs associated with processing monthly payments and the time value of money, as the insurer receives payments more gradually rather than as a single lump sum.

In this context, choosing a more frequent payment option like monthly premiums can lead to additional charges, leading to a higher gross premium compared to annual payments. Therefore, the statement that the gross premium is higher than annual payments accurately reflects the typical pricing structure in the insurance industry.