Final answer:
A standard optional provision for health policies is the Grace period, which allows extra time for premium payments to prevent coverage lapses.
Step-by-step explanation:
The standard optional provision for health policies that you're asking about is C) Grace period. This provision allows policyholders additional time, typically 30 days, to pay their premium without their coverage being canceled. It's designed to prevent a lapse in coverage due to a late payment or other temporary issues with premium payment. This differs from other options like a change of beneficiary, which is usually a right, not an optional provision, and misstatement of age, which is a condition that could affect the policy but isn't a standard provision to choose from. Issues like moral hazard and adverse selection are related concepts in the insurance industry that describe the challenges insurers face when policyholders change their behavior or when there is asymmetric information between the insurer and the insured.