Question

What does the "Grace Period" provision in a life insurance policy allow?

a.

It extends the policy term

b.

It allows policyholders to skip premium payments without consequences

c.

It provides an additional period to pay the premium after the due date

d.

It changes the death benefit amount

Posted under IC38 Life Insurance Agent Exam

Answer: (c).It provides an additional period to pay the premium after the due date Explanation:The "Grace Period" provision in a life insurance policy allows policyholders an additional period to pay the premium after the due date. If the premium remains unpaid during this grace period, the policy may lapse, and the death benefit may be affected.

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Q. What does the "Grace Period" provision in a life insurance policy allow?
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