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NSM General NISM
Medium

What is the purpose of the Grace Period clause in life insurance?

Practice question from IC 38 Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    To waive premium payment for a period

  2. B

    To ensure the policy remains active without extra premiums

  3. C

    To deduct premium from death benefit if death occurs

  4. To give extra time to pay premiums and prevent policy lapse

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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