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Life insurance policies typically come with grace periods. If you have a policy but don’t pay your premium on time, you’ll continue to receive coverage as long as you pay the amount you owe within the grace period. Let’s dive deeper into what a life insurance grace period is and how it might affect you as a policyholder.
A life insurance grace period is a set amount of time after your premium is due, during which policyholders may make a premium payment without their coverage lapsing.1 It provides a cushion that can come in handy if you’re unable to pay your premium on time for any reason. The insurance company and type of policy you have can determine the length of your grace period.
The grace period for life insurance will typically last 30 or 31 days.1 You can refer to your contract to find out what the grace period is for your particular policy.2
Insurance companies would like you to keep your coverage because it allows them to meet their business goals. Therefore, policies usually have grace periods. While you might be able to find a policy without a grace period, it’s uncommon.
Life insurance serves as a crucial safeguard for you and your loved ones, offering financial protection in the event of unexpected tragedies. However, financial difficulties can sometimes arise, making it challenging to uphold premium payments. The grace period feature of life insurance policies offers a lifeline during such times, allowing policyholders to maintain coverage even when facing temporary constraints. By extending the window for premium payment, the grace period ensures that you remain covered, providing peace of mind amidst uncertainty.
Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.
If you haven’t paid your life insurance premium and the grace period has ended, your policy will lapse. This means that if you pass away unexpectedly, your policy will no longer apply and your beneficiaries will not be entitled to a death benefit that you paid premiums for in the past.1
A lapsed life insurance policy can often be reinstated in a specified timeframe, but it typically involves fulfilling certain requirements set by your insurance company. Reinstatement procedures and requirements vary, but may include a reinstatement application and payment of your missed premiums.
You may miss a life insurance premium payment for several reasons, like:
Here’s how you can avoid missing your payments and prevent a lapse in your life insurance coverage:
Most life insurance companies let you set up automatic payments from your bank account. If you switch banks, don’t forget to change your banking details.
Use a calendar to set reminders for your life insurance payments, whether it’s a desk calendar or one on your mobile device. Be sure to make a premium payment as soon as you receive the reminder.
If you know you can’t make your premium payments, contact your life insurance company. They might provide more flexibility with the payment schedule, especially if you’ve been a loyal customer.
Don’t be afraid to reach out to beneficiaries to find out if they can help you make your premium payments. You can always pay them back when you’re able to.
Many life insurance policies have grace periods that can provide a safety net in case you can’t make your premium payment on time. However, a lapse in a life insurance policy will take away the added financial protection your beneficiaries would receive if you suddenly pass away. That’s why it’s important to make your premium payments on time and do whatever you can to prevent the policy from lapsing.
If you’re looking for life insurance, Aflac offers term and whole life insurance at rates that fit most budgets. Chat with an agent today to learn more.
1 MarketWatch - Understanding Your Life Insurance Payment Grace Period. Updated September 10, 2024. https://www.marketwatch.com/guides/life-insurance/missing-payment-grace-period-life-insurance/. Accessed October 22, 2024.
2 Investopedia – Insurance Grace Period: Definition, How It Works, Example. Updated June 11, 2024. https://www.investopedia.com/terms/i/insurance-grace-period.asp. Accessed October 22, 2024.
Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York.
B61000: In Arkansas, Idaho, Oklahoma, & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Delaware, Policies B61JWO, B61JTO. B60000: In Arkansas, Idaho, Oklahoma, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Q60000 (whole): In Arkansas & Delaware Policy Q60100M. In Idaho Policy Q60100MID. In Oklahoma, Policy Q60100MOK. Q60000 (term): In Delaware, Policies Q60200M. In Arkansas, Idaho, & Oklahoma Policies ICC18Q60200M, ICC18Q60300C, ICC18Q60400C.
Aflac Final Expense insurance coverage is underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (Tier One NAIC 92908).
Final Expense: Arkansas, Delaware, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Aflac Final Expense policies are not available in New York.
Coverage may not be available in all states, including but not limited to, DE, ID, NJ, NM, NY, VA or VT.
Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac WWHQ | Tier One Insurance Company | 1932 Wynnton Road | Columbus, GA 31999
Aflac New York | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211
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