Grace Period for Term Insurance Premium Payment - Meaning & Working

What Is the Grace Period for Term Insurance Plan?

Given below is a table showing the approximate grace period for payment method of your policy premiums:

Frequency of Premium Payments Grace Period in Days
Monthly 15
Quarterly 30
Bi-annually 30
Annually 30
Death Benefit Payout Options Lump Sum or Regular Income Based on Various Factors
Renewal Rate Guarantee Available as an Add-On

Disclaimer: Note that these are generic numbers that give you an approximate idea about the grace period. However, the actual number of days for each category may vary for different companies. Therefore, you must check with your insurer while purchasing to avoid defaulting or a penalty.

What Happens After Grace Period for Term Insurance is Over?

What Happens if the Insured Passes Away During the Grace Period of Term insurance?

Should You Restore the Lapsed Term Insurance Plan or Purchase a New One?

FAQs about Grace Period for Term Insurance Premium Payment

How long does the grace period last in term insurance policies? up-arrow

The exact number of days under grace period varies for different insurers. Therefore, before purchasing, you must carefully go through your policy contract.

Can I pay my term insurance premium a day after the grace period expires? up-arrow

No. The grace period is offered after the due date as an additional time. Therefore, if you fail to make payments within this period, your policy will lapse, and you will lose the premiums paid earlier.

Are waiting period and grace period the same? up-arrow

No. The waiting period refers to the period after buying a policy only after which you can make a claim on the policy. On the other hand, grace period refers to the additional time after the due date that insurers allow you to pay the outstanding premium.

Can I make the premium payments for term insurance policies in advance? up-arrow

Yes, you can pay your premiums beforehand. It saves your policy from lapsing and brings peace of mind. However, to know the exact process, you must ask your insurance provider.