Ron, the insured, dies during the grace period for his $100,000 life insurance policy. Considering that the premium on the policy has not been paid, what happens?
A) The premium due, plus a 10% penalty, is charged against the policy.
B) The amount of the premium is deducted from the policy proceeds paid to the beneficiary.
C) The beneficiary must pay the premium after the death claim is paid.
D) The premium is canceled because the insured died during the grace period."
Ans: B) The amount of the premium is deducted from the policy proceeds paid to the beneficiary.
Business
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