Life Policy ProvisionsQuestion 536 of 716
An insured dies during the grace period with one premium still unpaid. The insurer will most likely:
a.Deny the claim because the premium was overdue
b.Refund only the cash value to the beneficiary
c.Pay the full death benefit and then bill the estate for the missed premium plus a penalty
d.Pay the death benefit, reduced by the overdue premium
Explanation
The grace period keeps coverage in force after the due date, so a death during that window is a covered claim; the insurer simply deducts the one unpaid premium from the proceeds. It neither denies the claim nor limits payment to cash value, and it does not add penalties.
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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)