When a policyholder chooses a monthly premium payment mode on their Whole Life insurance policy, what is true about the gross premium?

When a policyholder opts for a monthly premium payment mode on their Whole Life insurance policy, the gross premium is indeed higher compared to paying annually. This is primarily due to the administrative costs and the financing involved in processing monthly payments. Insurers often charge more for monthly payment plans to cover the additional costs associated with billing, collection, and the risks linked to more frequent premium payments.

Moreover, with monthly payments, there is typically a time value of money consideration since the insurer is not receiving the full premium upfront. This can lead to an increased risk of lapses in coverage if a payment is missed. As a result, insurers reflect these factors in the premium structure, which results in higher gross premiums for monthly payment modes.

The other options do not accurately represent the dynamics of Whole Life insurance premiums. For instance, the cash value accumulation does not necessarily build faster simply because of a monthly payment mode; it's primarily determined by the policy structure and premiums paid in total. Additionally, the face amount of a life policy is determined at the time of issuance and does not change based on the payment frequency. Thus, option A accurately captures the essence of how payment modes impact the gross premium in Whole Life insurance policies.