Insurance Grace Period

Insurance Grace Period – An insurance grace period is the additional time granted after the premium payment due date during which the policyholder can make the payment without losing insurance coverage. It acts as a safety buffer to prevent unintentional policy lapses due to delayed payments. The duration of the grace period varies depending on the type of insurance policy and payment frequency, typically ranging from one day to three months. During this period, the policy remains active, but late payment may attract penalties or interest. Example: If a life insurance premium is due on 1st July with a 30-day grace period, payment made by 31st July keeps the policy valid without any break in coverage