Okuzeka
Insurance vocabulary · Premiums & Pricing

Grace period

Meaning in insurance, with examples

nounCommon term

In insurance, grace period means: Extra time after a premium is due during which the customer can still pay and the policy stays in force.

In Turkish: ek süre, prim ödemesi için tanınan ek süre

How it is used

Mentioned in letters about missed payments, especially in life and health insurance. A grace period is given or allowed, often 30 days in life insurance. If the premium is not paid before it ends, the policy may lapse.

Example sentences

  1. Your payment is late, but you are still within the 30-day grace period.

  2. If the premium isn't paid by the end of the grace period, the policy will be cancelled.

Common collocations

  • within the grace period
  • 30-day grace period
  • grace period expires
  • allow a grace period
  • premiumThe amount of money a customer pays to an insurance company for a policy, usually once a year or in monthly instalments.
  • lapseTo stop being valid because the premium was not paid or the policy was not renewed in time.
  • cancellationEnding an insurance policy before its expiry date, either by the customer or by the insurance company.
  • waiting periodA set time after a policy starts during which some benefits cannot yet be claimed, common in health and life insurance.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Premiums & Pricing

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This page explains English vocabulary for learners. It is not financial advice.