Final answer:
Failure to pay a life insurance premium by the due date automatically results in a policy lapse.
Step-by-step explanation:
The answer to the question is true.
Failure to pay a life insurance premium by the due date does indeed result in a policy lapse. When the premium is not paid on time, the policy will be terminated, and the insurance coverage will be discontinued. This is because the premium payment is necessary to keep the policy active and ensure the continuation of coverage.
A policy lapse can have serious consequences for the policyholder, as they will no longer have the benefits and protection provided by the life insurance policy. It is important to pay premiums on time to avoid any disruptions in coverage.