Question

An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period?

a. Refund of all premiums paid, plus interest
b. Refund of all premiums paid
c. Full face amount minus any past due premiums
d.Full face amount

Answer 1

If the insured dies during the Grace Period of their life insurance policy, the beneficiary receives the full face amount minus any past due premiums. Option C

Step-by-step explanation:

If an insured individual passes away during the Grace Period of their life insurance policy, the beneficiary will typically receive the full face amount of the policy. The Grace Period is a set amount of time after the premium due date, during which the policy remains in force despite the premium not being paid.

If the insured dies in this timeframe, the life insurance company will usually pay out the death benefit, but they will deduct any past due premiums from the amount that is disbursed to the beneficiary. Option C