Page 23 - IC24 LEGAL ASPECTS OF LIFE ASSURANCE

If premiums for at least three consecutive years have been

paid and further premiums are not paid, the insured can

surrender (close) the policy before the normal tenure and

collect the surrender value. In case however, the policy is not

surrendered, it shall subsist as a paid-up policy for

proportionately reduced sum assured.

Insurers list suicide within the 1" year of the policy in the list of

exclusions.

The accidental death benefit clause provides additional

benefits over and above the normal sum insured, in the event

of death of the insured due to accident. This clause entails

payment of additional premium.

For accidental death benefit clause, insurers mention exclusion

terms and conditions under which the insurer will not be liable

to pay.