The term grace period is very important to an insurance policy because

Question

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The grace period in an insurance policy refers to the period in which benefits are still payable even if premiums are in arrears. This helps policyholders avoid a total loss of coverage if they miss a payment deadline. Option A is incorrect because living benefits are referred to as "accelerated benefits" instead of grace period benefits. Option B is incorrect because renewal typically happens before the policy term expires, not after. Option C is incorrect because a lapsed policy cannot have a grace period.

The Term Grace Period Is Very Important to an Insurance