Grace Period

life insurance companies

The period of time following an insurance premium’s due date during which you can still make a payment without your policy lapsing. As with grace periods on other debts, the insurance grace period gives you an extra amount of time to juggle bills or wait for a paycheck before paying your monthly premium.

If you wait too long and try to make payment at any time following the grace period, your insurance policy may lapse. If this happens, you’ll have to reapply for coverage, and rates won’t be guaranteed at the same levels you were paying before.

If you have trouble paying your premiums within the allotted time, ask your insurance agent to help by reducing coverage amounts, or consider setting money aside at the beginning of each year to pay your premiums in full. This will make paying for your policy much easier, and you won’t have to struggle over the monthly grace period.

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