What is the result of failing to pay the premium during the grace period?

Failing to pay the premium during the grace period typically allows for a further consideration of the policy's status. If a premium is not paid by the end of the grace period, the policy does not lapse immediately. Instead, most policies provide the policyholder an opportunity for reinstatement. During the grace period, which is usually 30 days, the policyholder can still pay the overdue premium to keep the policy in force.

If the premium is not paid and the grace period expires, the insurance policy may be considered lapsed, but the insured usually retains the right to apply for reinstatement. This reinstatement often requires the policyholder to demonstrate insurability and may involve additional financial requirements. Thus, the correct answer emphasizes the possibility of reinstatement despite the premium not being paid during the grace period.