When you are shopping for life insurance it is a smart idea to ask, “what is a grace period for low cost life insurance”. Buying life insurance is one of the most effective ways to protect your loved ones. To avoid a lapse or even cancellation of your policy you should take extra care to always be on time with your premium payments.
How Does A Grace Period Affect Your Life Insurance Policy?
Typically, you will receive a 31 day grace period for every premium payment that follows after your first payment. Your insurance policy is still active during these 31 days. If by chance you should pass away during the grace period, the amount of the late premium will be subtracted from your death proceeds.
Can Automatic Payments Really Keep You Current?
It is common to put off paying a physical bill or find that you accidentally lost it. But, an automatic payment schedule frees you from the paper hassle. Yet, though it seems beneficial to use your credit card and automatically pay as it comes once a year, every 3 months or monthly, things can go wrong.
Credit cards can get stolen, renewed with a different number or expire, causing your automatic life insurance payment to be late. You may not even know its late until you are informed by mail that policy contract is canceled from here forward. If your policy is canceled and you renew, you will pay more since you’re now older and considered a higher risk.
In most cases, insurance companies use a grace period to protect your policy when a lapse occurs in premium payments.
By knowing what is a grace period for low cost life insurance, you may prevent or stop a critical lapse your policy and a higher insurance premium cost.