What does Grace Period mean? Read on to discover the definition & meaning of the term Grace Period - to help you better understand the language used in insurance policies.
A grace period is a particular span of time after the premium payment due date during which the policyholder can still enjoy the coverage provided by the insurance policy and pay without incuring a financial penalty. Payments made after usually incur a fee and/or a lapse in coverage. Insurance companies typically provide the policyholder with a grace period as little as 24 hours or as long as 30 days.
We hope the you have a better understanding of the meaning of Grace Period.