Lucas had a life insurance policy on his own life for $200,000 with a cash value of $24,000.The $1,687 premium was due annually on June 1.However,Lucas was in the hospital from May 16 through June 3,and the life insurance premiums were not paid.Lucas's brother realized that the premium had not been paid and sent the funds to the insurance company on June 11.Lucas died on June 24.Which of the following statements is true?

Question

Quizplus · Accepted Answer

Most life insurance policies include a grace period for premium payments, typically 30 days, during which the policy remains in force even if the premium is not paid on the due date. Since Lucas's premium was paid within this grace period, the policy would still be active, and the beneficiary would receive the full death benefit of $200,000.

Lucas Had a Life Insurance Policy on His Own Life