Premium Deferment Option. After the end of the 4th policy year, if the policy is inforce and there is sufficient surrender value, You have the option to request a premium deferment of one (1) year. This option can be exercised once for policies with a premium payment term of five (5) years and up to two (2) times for policies with premium payment terms of ten (10), fifteen (15) and twenty (20) years. This option is not available for premium payment terms of single premium and three (3) years. Upon activation of the premium deferment option, You do not have to pay the premium for one (1) year and the interest for premium owed during the premium deferment period will be waived. At the end of the premium deferment period, You can opt to pay back the premium owed, without interest, within one (1) month from the end of the premium deferment period. If the premium owed has not yet been paid one (1) month after the premium deferment period, automatic premium loan charges will start to accumulate on Your owed amount. Should You choose to pay back the premium owed during the premium deferment period, We will end the premium deferment and will consider the premium deferment option to be exercised. If You have taken a policy loan prior to the activation of the premium deferment option, the outstanding policy loan will continue to incur policy loan charges during the premium deferment period. No partial withdrawal / bonus withdrawal is allowed when premium deferment is exercised.
Appears in 1 contract
Sources: Policy Contract
Premium Deferment Option. After the end of the 4th policy year, if the policy is inforce and there is sufficient surrender value, You have the option to request a premium deferment of one (1) year. This option can be exercised once for policies with a premium payment term of five (5) years and up to two (2) times for policies with premium payment terms of ten (10), fifteen (15) and twenty (20) years. This option is not available for premium payment terms of single premium and three (3) years. Upon activation of the premium deferment option, You do not have to pay the premium for one (1) year and the interest for premium owed during the premium deferment period will be waived. At the end of the premium deferment period, You can opt to pay back the premium owed, without interest, within one (1) month from the end of the premium deferment period. If the premium owed has not yet been paid one (1) month after the premium deferment period, automatic premium loan charges will start to accumulate on Your owed amount. Should You choose to pay back the premium owed during the premium deferment period, We will end the premium deferment and will consider the premium deferment option to be exercised. If You have taken a policy loan prior to the activation of the premium deferment option, the outstanding policy loan will continue to incur policy loan charges during the premium deferment period. No partial withdrawal / bonus withdrawal is allowed when premium deferment is exercised.
Appears in 1 contract
Sources: Insurance Agreement