Letter of guarantee in the favour of the Insurance Company for payment of premium
Sub: “Guarantee for payment of premium under Life Insurance Policy
In consideration of your having agreed to assume life insurance risk of Mr. _____________ with effect from _____________.
We ___________ Bank hereby guarantee the payment of the necessary quarterly premium to you, should Mr. ___________ fails to pay the same in any quarter by the 15th of the calender month following the respective quarter PROVIDED that the liability towards the premium as aforesaid will not exceed a sum of Rs. ________ during the whole period of twelve months comprising four quarter commencing from ________.