A period (usually 31 days) after the premium due date, during which an overdue premium may be paid without penalty. The policy remains in force throughout this period."
Grace period is the agreed time period, written in the contract, within which you need to pay the premium to keep the policy in force. However, during this period you will enjoy full coverage. No extra amount is charged from you during the grace period. But the policy may lapse if the premium remains unpaid even after the grace period is over. _________________ Register Now to have your Insurance queries solved.
Hi swaite, for the life insurance policy, the insurer is required to allow you the grace period of 30 days to pay your premium. And as the other posters have already mentioned you will enjoy the coverage during this time which implies that you won't be denied a claim in this 30 days period. I believe the same applies to CA also.
However, once these 30 days are over, the insurer may ask you to produce a certificate of good-health to reinstate the policy. Otherwise, they will suspend it. Hope the input helps.
Folks, we are guessing at the type of insurance contract here. Nowhere does the OP mention what kind of policy he is referring to. That kind of helps, as there are definite differences as to the length of the grace period dependent upon the type of contract.
All states have minimum grace periods within the statutes or rules, and an insurer is always allowed to give a longer grace period than what is required in the laws or rules, just not a shorter period of time.
So, OP? What kind of policy are you referring to? That would certainly help, and I would be happy to give you the specifics if you could provide the info!
Agreed we need to know the type of policy that we are talking about here!!!! But if I had to guess Im thinking roughly 30 days if your lucky and that is usually talking about auto insurance. Yet again every company is different and has their own rules and regs on that also especially if we are talking non-payment of premium,... _________________ ~Monique~
The company I work for and the company I have my auto policys with (2 different companies) both on renewals, they must have the money within TEN days of the expiration...Although it isn't called a grace period, in effect that is what it is, but it is 10 days.
Grace period is the agreed time period, written in the contract, within which you need to pay the premium to keep the policy in force ................. Im thinking roughly 30 days that is usually talking about auto insurance
However, once these 30 days are over, the insurer may ask you to produce a certificate of good-health to reinstate the policy
You are welcome, people like this are an irritant, to 'true' posters wanting a question answered, or those who genuinely want to provide useful information in the attempt assist another. Thanks for keeping this a 'clean' board and for taking care of the NON-intelligentassasinator
