Final answer:
If a person covered by a term life insurance policy fails to make the premium payment, the policy will lapse and the insurer will not be obligated to provide the death benefit.
Step-by-step explanation:
When an individual is covered by a term life insurance policy but fails to make the required premium payment, the policy will usually lapse or be terminated. In this case, N did not make the payment due on August 1 and subsequently passed away on September 15. Since the premium was not paid, the insurance company will not be obligated to provide the death benefit to N's beneficiaries.