Final answer:
If Jacob fails to pay his insurance premium by the end of the grace period, his policy will lapse, meaning he loses coverage and will not receive any benefits from the insurance company.
Step-by-step explanation:
If Jacob does not pay the premium by the end of the grace period, his insurance policy will likely lapse or be canceled.
This means that the insurance company will no longer provide coverage, and if the insured event occurs (such as medical expenses are incurred, the policyholder dies, the car is damaged or stolen, or the dwelling is damaged or burglarized), the insurance company will not pay out any benefits.
Insurers typically provide a grace period to allow the policyholder extra time to make the premium payment; however, if the payment is not made within this time frame, the contract between the insurer and the policyholder is effectively broken.