Montana State Life Insurance Practice Exam

What is the grace period for all group life policies in Montana?

1. 21 days

2. 30 days

3. 31 days

4. 60 days

The correct answer is: 31 days

The grace period for all group life policies in Montana is 31 days. This provision is essential because it allows policyholders a specific timeframe to make premium payments without risking the lapse of the policy. During this grace period, the coverage remains in effect even if the premium has not been paid. Should the insured die during this period, the death benefit would still be payable to the beneficiaries, though any unpaid premiums would typically be deducted from the claim. Thus, a 31-day grace period provides both a financial buffer for policyholders and ensures that essential coverage is maintained during potentially difficult times. This standard helps uphold the insurance principle of providing security and continuity in coverage.