Special provision in respect of certain life insurance policies
[50A. (1) If, in respect of a policy of life insurance under which the whole of the benefits become payable either on, or at a fixed interval or intervals after, the occurrence of a contingency which is bound to occur, all the premiums have been paid for at least two consecutive years and the policy-holder does not, or is unable to, pay further premiums, any one of the following consequences according as the policy-holder has indicated his option in writing, shall ensue, namely:-
(a) the policy shall be paid up after advancing one year's premium subject to the availability of the surrender value; or
(b) the surrender value of the policy shall be applied to the payment of the premium due until the surrender value is exhausted.
(2) The option under sub-section (1) may be indicated by the policy-holder either at the time of taking the policy or at any time thereafter before the cessation of the payment of premium; and any option so indicated may be modified at any time before such cessation.]
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