What is grace period for life insurance

What is the grace period on a life insurance policy? Your grace period — the amount of time you have to make a payment after the due date and bring your life insurance policy back to good standing — is usually 30 days, but it depends on your policy and insurance provider.

What does it mean grace period on life insurance?

An insurance grace period is the amount of time after your premium is due, during which you can still make the payment without your coverage lapsing. The grace period is defined in the contract of your policy and provides you with the opportunity to maintain coverage even if you miss a payment.

What does the grace period allow a life insurance policy owner to do?

Most policies have a 31-day grace period after your premium's due date. You can make a late payment without being charged interest and still be covered. If you die during the grace period, your beneficiary gets the death benefit minus the past due premium.

How long is the grace period for premium payment?

The grace period for policies where the premium payment mode is monthly is 15 days from the due date.

What happens when the grace period expires with a whole life policy?

Permanent life insurance lapse\n\n Your policy will officially lapse once the grace period ends, meaning your coverage will end and no death benefit will be paid. Your policy's cash value might be used to fulfill your unpaid premium.