If the premium on a term insurance policy is not paid by the due date,which of the following is true?

Question

Quizplus · Accepted Answer

If the premium on a term insurance policy is not paid by the due date, the policyholder is typically given a grace period to pay the premium. The length of the grace period varies by insurer and policy, but typically it is around 30 days. During the grace period, the policy remains in force, but if the premium is not paid by the end of the grace period, the policy will be terminated. The death benefit of the policy is not reduced by the amount of premium owed, and there is typically no cash value on a term insurance policy.

If the Premium on a Term Insurance Policy Is Not