A grace period in a life insurance policy allows the policyholder to:

A grace period in a life insurance policy is a specified timeframe following the due date of a premium payment during which the policyholder can pay the premium without losing coverage. This period typically lasts for 30 days but can vary depending on the insurance company and policy terms.

If the premium is not paid within this grace period, the policy remains in force, ensuring that the policyholder is still covered for the duration of the grace period. Once this time elapses without payment, the policy may lapse, meaning that the coverage could no longer be effective unless remedial action is taken, such as allowing the policyholder to reinstate the policy by paying past premiums and fulfilling other conditions.

In contrast, the other options are not features typically associated with the grace period. The reinstatement of a lapsed policy generally requires the payment of back premiums, skipping a premium is not allowed under standard policy provisions, and receiving an automatic loan is not related to grace periods, as loans against a policy are subject to different terms and conditions.