What is a grace period on a life insurance policy?

A grace period is a window of time — typically 30 to 31 days after a missed premium due date — during which your policy remains active even though payment is overdue. If you die during the grace period, the insurer will still pay the death benefit, minus any unpaid premium. Once the grace period ends without payment, the policy lapses and coverage terminates. It acts as a safety net for policyholders who miss a payment due to an oversight.