What is a Grace Period?
A Grace Period is the additional time allowed after a premium payment is due, during which the policyholder can make their payment to avoid policy lapse. This period is typically 30 days but can vary depending on the insurer and the policy terms. During the Grace Period, the life insurance coverage remains active.
The Grace Period offers flexibility for policyholders who may face temporary financial challenges, allowing them time to make necessary payments. If a payment is not made within the Grace Period, the policy may lapse, and the insured person could lose coverage.