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An annuity or pure endowment contract must provide a grace period of:
15 days
20 days
4 weeks
1 month of at least 30 days
The correct answer is: 1 month of at least 30 days
The correct answer specifies that an annuity or pure endowment contract must provide a grace period of at least 30 days, which aligns with regulatory standards governing these types of contracts. Grace periods are designed to allow policyholders a buffer of time to make premium payments without risking the loss of coverage or benefits. In the context of annuities and pure endowments, this extended grace period serves to enhance consumer protection, ensuring that individuals have adequate time to address any financial issues or behavioral changes that could otherwise lead to a lapse in their policy. The other choices suggest shorter periods, which do not meet the minimum requirements set forth in many regulatory frameworks. By providing at least 30 days, it helps ensure that policyholders maintain their rights and benefits under the contract, reinforcing the importance of long-term financial planning and commitment to the annuity or endowment.