Licentiate Exam - IC 02 Practice of Life Insurance Exam - Important Points
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Grace period is an extended period of time a policyholder gets for making their insurance premium payment.. Grace period is 15 days in case of monthly mode of premium and 30 days or 31 days in all other cases.
The policy continues to remain in force during days of grace, even if premium is not paid
If death occurs within the grace period, the claim is paid in full though the policy is in full force, subject to the deduction of the last unpaid premium during the current year of the policy.
The 'days of grace' clause is not enforced in SSS (Salary Saving Scheme) cases.
Surrender Value - the amount the policyholder will get from the life insurance company if he decides to exit the policy before maturity
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