n NISM Certifications
NSM General NISM
Medium

What is the purpose of the Grace Period in a life insurance contract?

Practice question from IC 38 Mock Test 13 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Allows policyholders to extend policy term without extra premiums

  2. Provides an additional timeframe to pay a premium after it is due

    Correct answer

  3. C

    Provides extra time to submit claims for benefits

  4. D

    Keeps the policy active even if the insured dies during the grace period

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

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