If the premium on a term insurance policy is not paid by the due date, which of the following is true?
A) The policy is immediately terminated.
B) The death benefit of the policy is reduced by the amount of the premium owed.
C) The premium will be deducted from the cash value of the policy.
D) The policyholder is given a grace period to pay after which the policy will be terminated if the premium is not paid.
Answer: D
Business
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