The usual form of contract provides for the payment of the sum assured if the child survive the selected period with a death benefit of—

(a) A return of all the premiums paid, or

(b) A return of all the premiums paid accumulated at a low rate of interest, say, 2 %.

In view of the nature of the death benefit and the fact that the commission (usually 2½% of the premiums) and expenses are small, it is usual to ignore mortality and charge a premium based on interest only, the net 3 % rate being fairly common. Expenses and profit are derived from surplus interest. Sometimes a procuration fee of 10s. is payable, with renewal commission of 2½ %, and in such a case the question of adjusting the rates must be considered, particularly if the death benefit includes interest.