Boston Mutual Life Insurance Company gives our policyholders several modal premium payment options: annual, semi-annual, quarterly or monthly. Each payment mode, other than annual, causes a higher annual premium cost. This covers the additional administrative costs in processing the multiple payments, as well as the time value of the annual premium the company would collect at the beginning of each policy year under annual payment option. The difference between the total modal premiums for the year and the annual premium can be expressed as an Annual Percentage Rate (APR). The modal premium APR equates the additional charges for a modal payment to the interest rate on an installment loan. Unlike loans, modal premiums are not a debt owed to the Company. The policyowner is under no obligation to continue paying modal premiums. If a premium is not paid when due, however, the policy may terminate or the coverage may be reduced.

If you would like to know the Annual Percentage Rate (APR) you are paying for your modal payment option, you may use the APR Calculator above and input Annual Premium, Payment Mode, and Modal Payment as shown on your Policy Specification Page.

You should know that it may not be appropriate to take out a consumer loan to avoid payment of modal premiums. This could result in interest charges associated with the loan that you would not incur by paying for your insurance modally. As a policyholder (not applicable to payroll deduction), you have the right to change your premium payment mode during the premium-paying life of your policy. To make such a change or ask for additional information on your policy, please contact your local representative or Boston Mutual Life Insurance Customer Service at 1-800-669-2668.