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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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