Insurance Policy Grace Period Law and Legal Definition
Insurance policy grace period is a period of time specified in an insurance contract during which premiums may be paid after their due date. Depending on the insurance policy, the grace period can be as little as 24 hours or as long as 30 days. Generally, interest is not charged on overdue premiums if paid during the grace period. Also, there may or may not be a penalty, or additional charge, when paying the insurance payment during the grace period. If a loss occurs during the grace period, the premium is deducted from the proceeds payable.