William, age 67, has owned his life insurance policy for the past 15 years and has mailed his monthly premiums to his life insurance company. Last month he failed to mail the monthly payment on his premium due date as well as during his policy's grace period. As a result, which of the following scenarios will MOST likely occur?
1) His life insurance policy will be cancelled
2) His life insurance policy will remain active
3) His life insurance company will increase his premium
4) His life insurance company will waive the late payment fee