If the Premium on a Term Insurance Policy Is Not

question 102

Multiple Choice

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.

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Definitions:

Individual Income Taxes

Taxes levied on the income of individuals or households, varying with income levels.

Social Insurance Taxes

Taxes collected by a government to fund social security programs, providing benefits for retirees, the disabled, and the unemployed.

Corporate Income Taxes

Taxes imposed on the net income (profits) of corporations, determined by the law of the country in which the corporation is registered.