New Jersey Life Producer Practice Exam 2026 – Your Complete All-in-One Guide to Exam Success!

Question: 1 / 400

What is the purpose of a grace period provision in an insurance policy?

To waive premiums permanently

To allow continuation of coverage beyond the due date

The purpose of a grace period provision in an insurance policy is to allow for the continuation of coverage beyond the due date for premium payments. During the grace period, the policy remains in force even if a premium payment has not been received by the due date. This provision provides policyholders with a specified amount of time, typically 30 days, to make their payment without losing coverage.

If the premium is paid during the grace period, the policy will continue as if the payment was made on time. This feature is beneficial as it prevents unintended lapses in coverage due to unexpected delays in payment or financial difficulties, ensuring that the policyholder's beneficiaries remain protected.

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To modify policy terms

To increase the death benefit

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