If an individual dies shortly after the premium payment is due but not paid, what will the insurer do?

In the event that an individual passes away shortly after a premium payment is due but has not yet been made, the insurer typically will pay the face amount of the policy minus the amount of any past due premiums. This is because life insurance policies generally require that premiums be up to date for coverage to be in force at the time of death. If the premium is due but unpaid, the insurer is obligated to deduct the unpaid amount from the death benefit owed under the policy.

By following this procedure, insurers ensure that they maintain their contractual obligations while also adhering to the principles of fair insurance practice. The policyholder's intention to keep the coverage would be acknowledged, but the payment must reflect what is rightfully owed to the insurer. This approach balances the interests of both the insured and the insurer within the framework of the policy terms.