There is a possibility that the policy will be forfeited if the premium is not credited at the time of surrender. Therefore, there is a policy option for non-confiscation. Generally, the policy option is executed after obtaining a policy surrender value. The benefits of the lower options are discussed below
. Policy Option (A)
If the premium is not deposited at the time specified under the policy option (A), the policy is not liquidated and in such case the policy can be automatically started by accepting as one year premium loan from the surrender value. After one year, the policy is converted to fractional insurance or partially paid insurance.
2. Policy Option (B)
The difference between policy (A) with policy (B) is that there is no deadline to continue the policy by borrowing from the surrender value. If the insurer wishes to pay the policy before the surrender value is exhausted, he may pay the premium as per the rules applicable to Option (A).
In case of a policy option (C) , if the premium of a policy is not credited within the stipulated time, the policy goes directly to the insured or partially converted into insurance. The executed value of the policy will be considered payable upon maturity or raising the death penalty. Re-adjusting partially performed insurance may require different override requirements, including outstanding premium delay fees, etc.