LETTER OF GUARANTEE 

 

M/s_______________

Date ______________

 

Sub: Guarantee for payment of premium under Life Insurance Policy No. _________

 

Dear Sir,

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 calendar 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 ___________.

 

Yours faithfully,

 

For ___________ Bank