An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period?

When an insured individual passes away during the Grace Period of a life insurance policy, the beneficiary will receive the full face amount of the policy, but any past due premiums will be deducted from that amount. This allows the insured to maintain coverage despite being behind on payments, as the policy is still technically in force during the Grace Period.

The Grace Period is designed to give the policyholder a window of time to make outstanding payments without losing coverage. By allowing the beneficiary to receive the full face amount minus any unpaid premiums, the insurance company ensures that it compensates for the risk taken, while still honoring the intent of the policy. This approach provides a safety net for both the insured and the beneficiary, reinforcing the purpose of life insurance in providing financial support upon death. Therefore, the answer correctly reflects how insurance payouts are handled under these circumstances.