LLQP (Life Licence Qualification Program) Practice Exam · Question
Which policy provision prevents a life insurance policy from immediately lapsing if a premium payment is missed?
The grace period is a standard provision (usually 30 or 31 days) that allows the policy to remain in force if a premium is missed. If the insured dies during th
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Question: Which policy provision prevents a life insurance policy from immediately lapsing if a premium payment is missed?
Answer options:
- Reinstatement provision
- Ownership provision ✅ Grace period provision
- Incontestability provision
Correct answer: Grace period provision
Explanation: The grace period is a standard provision (usually 30 or 31 days) that allows the policy to remain in force if a premium is missed. If the insured dies during this period, the death benefit is paid minus the overdue premium. Ownership, Dividends, and Reinstatement are different provisions.
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- A life insurance policy that offers lifelong coverage, a guaranteed death benefit, and a savings component tha
- Group benefits in Canada commonly include:
- Sarah, a 35-year-old marketing professional in Ontario, purchases a participating whole life insurance policy
- Mark, a 45-year-old business owner in British Columbia, has a Universal Life policy with a Level Cost of Insur
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