In a life insurance policy, what is typically the outcome if the premium is not paid during the grace period?

If a premium is not paid during the grace period of a life insurance policy, the policy generally lapses, meaning it is canceled automatically. The grace period is a designated time frame provided by insurers after the premium due date, allowing policyholders to make payment without losing coverage. If the policyholder does not pay within this specified time, the policy typically ends, and the insurance company is no longer obligated to provide coverage.

The other options imply different outcomes that do not align with standard practices in the context of a policy that has lapsed due to non-payment. For instance, reinstating a policy usually involves certain conditions and fees, but it would not occur if the grace period has expired without payment. Similarly, conversion to a term policy is not a typical consequence of non-payment; it usually requires a specific contractual provision. Lastly, requiring a health evaluation is not a standardized response in such situations; it's typically relevant during the application process or reinstatement of a lapsed policy rather than directly tied to missed premium payments within the grace period.