Question

What time period allows an insured's life insurance policy to remain in force even if the premium was not paid on the due date?

A) Entire contract period
B) Free-look period
C) Reinstatement period
D) Grace period

Answer 1

The correct answer is D) Grace period. A grace period is a defined period of time after the premium due date during which an insured can make a late payment without the policy lapsing.

Step-by-step explanation:

The correct answer to this question is D) Grace period.

A grace period is a defined period of time after the premium due date during which an insured can make a late payment without the policy lapsing. The length of the grace period can vary depending on the policy and insurance company, but it is typically 30 to 31 days. During the grace period, the policy remains in force, and the insured will still have coverage.