Page 24 - Life Assurance

f-preservation. Thus, there is a presumption
against suicide. Consequently, the burden of
proving suicide always rests on the insurer.

5- Grace Period:

A life insurance policy also contains a grace
period during which the policy owner has a
period of 31 days to pay an overdue premium.
Universal life and other flexible-premium
policies have longer grace periods, such as 61
days. The insurance remains in force during the
grace period.

6- Misstatement of Age or Sex Clause:

Under the misstatement of age or sex clause, if
the insured's age or sex is misstated, the amount
payable is the amount that the premiums paid would
have purchased at the correct age and sex.

Second: Beneficiary Designation:

The beneficiary is the party named in the policy
to receive the policy proceeds. The principal types
of beneficiary designations are as follows:

1- Primary and Contingent Beneficiary A
primary beneficiary is the beneficiary who is first
entitled to receive the policy proceeds on the
insured's death. A contingent beneficiary is
entitled to the proceeds if the primary
beneficiary dies before the insured. If the

88 Life41/life/life 08