A life policyholder enjoys days of grace?

A. at the inception of the policy
B. at the renewal time of the policy
C. when he surrenders the policy
D. when the policy is paid up

Correct Answer: Option B

B. at the renewal time of the policy

Explanation

A grace period allows a borrower or insurance customer to delay payment for a short period of time beyond the due date.

insurers allow policyholders a period of grace of at least 15 days, during which arrear premiums can be rectified. In the life insurance industry, the norm is to allow policyholders a grace period of 30 days.