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Key Takeaways
Most insurers offer a grace period of 15 days for monthly premiums and 30 days for quarterly, half-yearly, or annual premiums before the policy lapses.
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What happens when you do not pay the premium on time?
Both term insurance plans as well as life insurance plans provide you a life cover in exchange for the premium paid for the desired policy term. If you forget to pay the premium on the specified date due to any circumstances beyond your control or because you do not wish to continue with the policy, a grace period is provided. This can range anywhere from 15 days to 30 days depending on your insurer and policy guidelines. While a grace period of 15 days is applicable for policies with a monthly payment mode, you can avail up to 30 days of grace on all other payment frequencies including yearly, half-yearly and quarterly.