Grace Period

Why it matters

If the insured dies during the grace period, the carrier pays the claim but may subtract the unpaid premium. If the premium is not paid by the end, the policy can lapse. The length depends on the policy and state law. Set up automatic payments to avoid missing a date, and ask about reinstatement if a lapse happens.

Source: law.cornell.edu

Where we use this term

• How much does final expense insurance cost, and what sets the price?
• Burial insurance: is it different from final expense, and is it worth it?
• Final expense insurance: what it pays for, what it costs, and who it fits