Cal purchased a whole life policy 6 years ago.The policy requires annual premium payments.Cal forgot to pay the premium that was due 2 weeks ago.He wonders if his life insurance is still in force.Which life insurance policy provision is designed to keep the policy in force for a short time even if the premium payment is late?

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The grace period is designed to allow the policyholder to make a late premium payment and keep the policy in force for a short time, typically 30-31 days after the premium due date. If the premium is not paid by the end of the grace period, the policy will either lapse or enter into a status of reduced paid-up insurance or extended term insurance, depending on the terms of the policy. Waiting period, guaranteed purchase option, and reinstatement clause are other policy provisions that have different purposes and functions.

Cal Purchased a Whole Life Policy 6 Years Ago