Which mode of payment is NOT commonly used by health insurance policies?

The selection of a single premium as the mode of payment that is not commonly used by health insurance policies is valid due to the typical structure and payment options that health insurance providers tend to offer.

Health insurance policies generally follow a recurring payment schedule to keep coverage active, which helps ensure that policyholders maintain continuous health coverage without the large upfront cost associated with a single premium. Monthly, quarterly, and annual premiums are commonly offered, allowing policyholders flexibility in managing their payments according to their financial situation.

In contrast, a single premium would require a one-time, lump-sum payment that covers the entire policy term, which is more common in life insurance products rather than health insurance. This payment structure is less practical for most consumers who might find it difficult to afford a large upfront payment for ongoing health coverage. Therefore, health insurance policies primarily rely on more frequent payment methods such as monthly, quarterly, or annual premiums.