Which clause in a life policy describes when benefits are payable?

• A. Grace period
• B. Insuring clause
• C. Nonforfeiture clause
• D. Contestability clause

Answer: (B)

The insuring clause is the part of a life policy that states the insurer’s promise to pay the death benefit and identifies when that payment occurs—the event that triggers payment, typically the death of the insured while the policy is in force. This is the clause that defines the basic payable condition of the policy. By contrast, the grace period covers extra time to pay premiums, the nonforfeiture clause explains what happens if the policy lapses, and the contestability clause sets a time limit on challenging the insured’s statements. So the clause describing when benefits are payable is the insuring clause.