Which feature ensures that the policy does not lapse if premiums are unpaid after the grace period?

The feature that ensures a policy does not lapse if premiums are unpaid after the grace period is the Automatic Premium Loan. This provision allows the insurance company to automatically take a loan against the cash value of the policy to cover any unpaid premium when the grace period ends. This mechanism is particularly beneficial for the policyholder as it helps maintain the insurance coverage even during times of financial strain when premium payments may be missed.

By utilizing the accumulated cash value as a temporary source of funding, the policy remains in force, preventing it from lapsing, which could lead to loss of coverage and potential complications in securing new insurance. It is a protective feature that provides peace of mind to policyholders, ensuring that their coverage continues without interruption, as long as there is sufficient cash value to cover the payment due.

Other options do not directly address the issue of lapsing due to unpaid premiums after the grace period. The Incontestability Clause pertains to the period during which an insurer can contest a claim based on misrepresentation or fraud, while the Reinstatement Option provides a method to reinstate a policy that has lapsed if certain conditions are met. Partial Withdrawal refers to taking out a portion of the cash value of the policy, which also does not prevent a policy from