Final answer:
Policy reinstatement and Policy loans are other terms related to life insurance but do not prevent lapses due to non-payment directly. The correct option is A.
Step-by-step explanation:
To prevent a lapse in the payment of life insurance premiums, one could utilize an Automatic premium loan provision if it is available in the policy. This provision automatically covers the premium payment from the cash value of the life insurance policy if the insured person misses a payment, preventing policy lapses. It's important to understand that this is essentially a loan against the policy that accrues interest and must eventually be repaid or will be deducted from the death benefit.
A Grace period is a timeframe after a missed payment during which the policy remains active and the insured is allowed to make the payment without the policy lapsing. Policy reinstatement refers to the process of making a lapsed policy active again by fulfilling certain conditions and paying overdue premiums, potentially along with interest or penalties.
A Policy loan allows the policyholder to borrow money from the cash value of the life insurance policy, but it is not directly related to preventing the lapse of policy due to non-payment of premiums.