Which of the following statements about the grace period in a whole life insurance contract is (are) true?
I. The purpose of the grace period is to prevent the policy from lapsing by giving the policyowner additional time to pay an overdue premium.
II. If the insured dies during the grace period, the death benefit is reduced by 50 percent.
A) I only
B) II only
C) both I and II
D) neither I nor II
Answer: A
Business
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