Definition & Meaning:

If you have an insurance policy and you miss paying a 'premium/payment' on time, does the insurance automatically stop covering you?

Fortunately with most insurance companies, it doesn't. With these insurance companies, the insurance policy will continue to cover you for a number of weeks until the policy is finally cancelled/terminated. This continued cover is called a 'grace period'.

The 'grace period' normally lasts for between 2 to 4 weeks after the date of the scheduled payment. In this time, the customer/holder is still covered by the insurance policy. If the 'grace period' has finished and they still haven't paid, the insurance policy is cancelled.

The terms and conditions and and length of the 'grace period' differ between insurance companies. So, if you want to know what the 'grace period' is for your insurance policy, either look in the policy's terms and conditions or speak with your insurance company.


Related Vocabulary:

Insurance Premium.

To learn more vocabulary connected to insurance, you can do a free online exercise on insurance policy vocabulary.