State the correct one of the following ones.

A. A policy lapses if the premium is not paid on the due date

B. A policy lapses if the premium is not paid within the grace period

C. A policy does not lapse at all under any conditions

D. Investment risk in a ULIP policy is borne by the Insurer

Answer: Option B

Solution(By Examveda Team)

A policy lapses if the premium is not paid within the grace period. A policy lapses when you skip paying its premium, not just on the due date but even within the grace period—which is typically a month.