By the word "Monthly" for "Monthly Premiums" it is meant that the total sum of the contract-stipulated monthly premium amount for each policy month during the policy year is payable twelve times per policy year in advance of each month during the policy year policy period.

By the words "in advance", it is meant that the premiums are payable at the beginning (theoretically on the first day) of each month of the policy.

The "policy year" commences with the day of the month as stated in the policy contract and its duration is for a full year, commencing with the first day and ending at the end of the preceding day of the following calendar year. For example, a policy year that commences on September 12th continues to and includes the day of September 11th of the following year. The "month" commences with the day of the month as stated in the policy contract and its duration is for one month. The "policy year" consists of twelve "month" periods, with each month commencing immediately upon the end-point of the prior "month".

The payment of premiums by means of "annual" payments is the most cost effective way, and most recommended particularly if the premiums are paid with "after-tax" dollars ("after tax" dollars represent the money that is left from earnings, after income taxes are paid; for example a person in the 50% income tax bracket would have to earn $2,000 in order to have $1,000 in "after-tax" dollars to pay for the premium).

The payment of premiums by means of "monthly" payments is normally the least cost effective while the "annual" premium payment mode is normally least costly.