Health and Life Insurance

Category - Annuities & Policies

When the insured misses a premium payment, how long is the typical grace period before the policy terminates for non-payment?
  1. 1 week from the due date
  2. 2 weeks from the due date
  3. 1 month from the due date
  4. 2 months from the due date
Explanation
Answer: C - The standard grace period is one month (30-31 days) from the due date. Although this can vary, the one month period is the most common grace period. The grace period is a buffer for missed or forgotten payments, or if the insured needs a little more time if they are short of funds. The policy is still in force during the grace period. Only after the grace period expires will the policy expire as well.
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