What is the standard grace period for a life insurance policy sold in Maryland?

What is the standard grace period for a life insurance policy sold in Maryland?

• A. 60 days
• B. 30 days
• C. 45 days
• D. 15 days

Answer: (B)

The standard grace period for a life insurance policy sold in Maryland is 30 days. This period is crucial because it provides policyholders a buffer to pay their premiums without losing coverage. During this grace period, if a premium is not paid by the due date, the policy remains in force, allowing the insured to settle the outstanding payment without risking a lapse in coverage. This consumer protection ensures that individuals have some flexibility in managing their payments while still maintaining their life insurance protections. The 30-day grace period is a common industry standard, aligning with regulations designed to safeguard policyholders' interests.

The standard grace period for a life insurance policy sold in Maryland is 30 days. This period is crucial because it provides policyholders a buffer to pay their premiums without losing coverage. During this grace period, if a premium is not paid by the due date, the policy remains in force, allowing the insured to settle the outstanding payment without risking a lapse in coverage. This consumer protection ensures that individuals have some flexibility in managing their payments while still maintaining their life insurance protections. The 30-day grace period is a common industry standard, aligning with regulations designed to safeguard policyholders' interests.