Q529
State the correct one of the following ones.
A.
A policy lapses if the premium is not paid on the due date
B.
A policy lapses if the premium is not paid within the grace period
AnswerC.
A policy does not lapse at all under any conditions
D.
Investment risk in a ULIP policy is borne by the Insurer
Answer: Option B
Solution
Answer: Option B
Solution:
A policy lapses if the premium is not paid within the grace period. A policy lapses when you skip paying its premium, not just on the due date but even within the grace period—which is typically a month.