Default In Life Insurance

An interesting point relating to life insurance policy-holders was raised a few days ago in a case iu the Superior Court of New York - reported in the World. Some of the companies allow days of grace- usually thirty days - for the payinent of premiums, and it has been generally uuderstood that the policy was in force during the days of grace if the premium remaiued unpaid until their expiration. It has been the praotioe of some of the companies, and all as far as we know, who allow this grace to regard the policy in force, and in the event of the death of the insured within that time, even though the premium had not been paid, to pay the policy claim without any question. In the case alluded to action was brought to recover the amount of the policy issued by the Guardian Life InsuranceUompany, which the company refused to pay on the ground that the insured died while the premium was in default, though thirty-five days grace was allowed by the terins of the policy, and had not expired when the insured died. The plaintiff olaimed that the insurance was in foree by the termB of the policy, and the company claimed that the ineurance expired - the policy lapsed - at the date when the premium was due and the allowing of grace gave the asiured the right only to revive the policy by the payment of premium within the time specified. The company's view of the meaning of the allowance of grace for the payment of premiums will doubtless be new to many of our readers who have supposed tbat there was no question that their policies were kept in full force up to the last day on which the company was bound to receive the premium. The decisión of the court was for the plaintiff.