What is a Life Insurance Grace Period
Worried You Will Forget to Pay Your Premium on Time? That’s What a Life Insurance Grace Period is For
Sometimes, despite our best intentions, we forget to do something. It might be something as simple as missing garbage day or as serious as forgetting to take your medication. In some cases, such as your life insurance premium, you may forget to pay your monthly bill.
Before you start to panic and worry that the insurance provider will void your policy, rest assured that virtually every insurance provider builds a life insurance grace period into the policy contract. With this life insurance grace period, should you forget to pay your bill on time, the company will allow you an extended grace period during which they will likely send you a reminder. Even though the first bill may have slipped your mind, you will be sure to pay the bill straight away when you see the reminder arrive in the mail!
One great way to do away with the hassle of trying to remember to pay your premium, and something that will ensure you never need to rely on the life insurance grace period again, is to set up your policy so that the premium is automatically withdrawn from your bank account at the time it is due. It’s likely you’ve already automated some of your other bills this way, so why not add your life insurance premium as well?
Even if you’re not crazy about automatic withdrawals, rest easy knowing that a life insurance grace period is available should you need it. Your insurance provider doesn’t want anything to get in the way of you receiving the coverage you need either, so this is one way they’ve got your back.