What happens if a policyholder with a universal life insurance policy misses a payment?

Question

Quizplus · Accepted Answer

If a policyholder with a universal life insurance policy misses a payment, the funds are withdrawn from the cash value to pay the premium. The policy will not be terminated immediately but if there is not enough cash value to cover premiums, the policy may be terminated after a grace period of 30-60 days depending on the policy terms. Option A and D are incorrect as they state that the policy is terminated immediately or after a grace period of 60 days respectively, which may not be true for all policies. Option B is also incorrect as the cash value is not refunded and the policy is not terminated automatically.

What Happens If a Policyholder with a Universal Life Insurance