What action is NOT allowed under the provisions of a life insurance policy's grace period?

The grace period in a life insurance policy provides the policyholder with a specified number of days after the premium due date to pay the premium without losing coverage. During this time, the policy remains in force, even if the premium is not paid by the due date.

Choosing to skip a premium payment once a year is not in keeping with the grace period's provisions. The grace period is designed to allow for late payment but does not permit the deliberate omission of a premium payment as a regular practice. If a policyholder intends to skip a payment, it would ultimately lead to a lapse in coverage after the grace period, unless arrangements are made to bring the policy current.

In contrast, paying a premium late while still covered is a key benefit of the grace period, as it prevents an immediate lapse in policy coverage. Reinstating a lapsed policy usually requires payment of back premiums, and automatic loan provisions typically mean that loans taken against the policy are managed as part of the policy's benefits rather than creating an expectation that they will occur automatically without action from the policyholder.