Grace period

If a premium is not paid on the due date, the policy does not lapse immediately. A grace period follows, during which cover continues and the payment can still be made.

Its length is typically shorter for monthly payment than for yearly. Your policy document states the period that applies to you.

Related terms

• Lapse What happens to a policy when premiums stop being paid and the grace period expires.
• Revival Restoring a lapsed policy to full force, within a defined period and on the insurer's terms.
• Premium frequency How often premiums are paid — yearly, half-yearly, quarterly or monthly.

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