Life insurance grace period

Life insurance is a contract between you and your insurer. In exchange for your premiums, your provider offers coverage. But if you miss a premium payment, your provider will give you some time to settle that debt.

What is the life insurance grace period?

The grace period is the amount of time your insurer will give you to pay your premium without penalty. It’s legally required in all states, though the length can vary.

How long is the grace period for an individual life insurance policy?

The life insurance grace period typically ranges from 28 to 31 days — though some insurers are more generous. During this time, your coverage stays in force.

What happens if I don’t make a payment within my policy’s grace period?

If you fail to make a payment within that timeframe, your provider will cancel your policy. This means you’ll no longer have coverage, and your beneficiaries won’t receive a death benefit if you die.

It may have consequences later down the line, too. If you decide to take out a new policy, you run the risk of being denied coverage or charged higher premiums — especially if your health has declined.

Is there anything I can do if my policy lapses?

You might be able to reinstate your policy. Most providers will reinstate coverage within 30 days of a lapse without the need for any additional paperwork. After 30 days, you’ll most likely have to start from scratch and go through the underwriting process again.

If you want to reinstate your policy, follow these steps:

1. Ask your insurer for a reinstatement application. It will be similar to the original application you filled out when you purchased the policy.
2. Complete the form and document any health changes. Remember, life insurance is a legally binding contract, so be upfront.
3. Schedule a medical exam, if applicable.
4. Once your reinstatement is approved, you’ll need to pay the premiums due from the end of the grace period, plus your new premium. Generally, your provider will require you to pay your premium in full.

Most insurers will give you three to five years to reinstate your policy.

How to mitigate missing payments

When you miss a payment, you’re putting your policy at risk. Avoid skipping a payment with these strategies:

• Set it and forget it. Most life insurance companies will allow you to set up automatic payments from your checking account every month or year.
• Pay your premium annually instead of monthly. It’s easier to keep track of one payment than twelve.
• Dip into your policy’s cash value. If you have a permanent policy, you might be able to use any accumulated cash value to cover your premiums. Keep in mind that tapping into the cash value reduces the death benefit amount.
• Make use of a policy rider. Are you unable to pay your premium due to an unforeseen injury or illness? If you opted into a waiver of premium rider, it may be able to step in until you return to work.
• Assign someone to receive late payment notices. Send notices to your account or a trusted friend or family member. They can then remind you to pay your premium before the due date.

What are my options if I can no longer pay my premiums?

If you’ve done the math and can’t afford your policy anymore, you have options.

• Let the policy lapse. Explore other solutions to meet your financial needs. For example, if you simply want to leave your beneficiaries the cash to cover your funeral expenses, you could open a high-interest savings account.
• Surrender your policy. If you have permanent life insurance that’s built up cash value, you can surrender your policy and receive the cash value. You won’t get a refund on the premiums you’ve paid, though.
• Research new policies. Find a policy that better suits your budget by comparing providers, policy features and premiums.
• Look into a life settlement. You may be able to sell your policy and receive a percentage — usually 20% to 30% — of its face value. These transactions are handled by brokers or providers, and the new owner will be named as the beneficiary of your policy.

Compare life insurance companies

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Name	Product	Issue age	Minimum Coverage	Maximum Coverage	Term Lengths	Medical Exam Required
Sproutt		18 - 60 years old	$50,000	$4,000,000	5, 10, 15, 20, 25 and 30 years	No	Compare 40+ insurers and apply online to get the lowest possible price — no medical exam required.	Go to site More Info	Compare	loading Fetching your data...
Policygenius - Life Insurance		18 - 85 years old	$50,000	$10,000,000	10, 15, 20, 25, 30 years	Depends on provider and policy	Compare 12+ top insurers side-by-side to get the best possible deal, and shop return of premium policies online.	Go to site More Info	Compare	loading Fetching your data...
Bestow		18 - 60 years old	$50,000	$1,500,000	10, 15, 20, 25, 30 years	No	Get a quote in less than 10 minutes with on-the-spot approval and no medical exam.	Go to site More Info	Compare	loading Fetching your data...
Everyday Life		20 - 75 years old	$100,000	$10,000,000	10, 15, 20, 25, 30, 35 and 40 years.	No	Ladder multiple life insurance policies to save on the coverage you need for all your debts.	Go to site More Info	Compare	loading Fetching your data...
Ladder		20 - 60 years old	$100,000	$8,000,000	10, 15, 20, 25 or 30 years	No, for coverage up to $3M	Apply for term life insurance online without the medical exam. Get an instant decision and adjust your coverage at no charge.	Go to site More Info	Compare	loading Fetching your data...
JRC Life Insurance		18 - 85 years old	$5,000	$50,000,000	10, 15, 20, 25, 30, 35, 40 years to lifetime/age 121	May be required	Compare policies up to $10 million from 45+ top insurance companies with the click of a button.	Go to site More Info	Compare	loading Fetching your data...
Nationwide life insurance		18 - 80 years old	$25,000	$10,000,000	10, 15, 20 and 30 years	Yes	Get term, whole, universal or no-exam life insurance with up to $1 million in coverage.	Go to site More Info	Compare	loading Fetching your data...
Haven Life		20 - 64 years old	$250,000	$3,000,000	10, 15, 20, 25 or 30 years available to those aged 20 - 49 years old. 10, 15, or 20 years available to those aged 50 - 64 years old.	No exams for some applicants	Fill out a quick online application and get approval in minutes with up to $3 million in coverage.	Go to site More Info	Compare	loading Fetching your data...
Fidelity		20 - 85 years old	$25,000	$1,000,000	10, 20, or 30 years	Depends on policy	Purchase term, whole and accidental death coverage online without the exam, with rates starting at a low $10 a month.	Go to site More Info	Compare	loading Fetching your data...
Quotacy		18 - 80 years old	$50,000	$65,000,000	10, 15, 20, 30 and 40 years	Depends on provider and policy	Score the lowest rate on life insurance by comparing no obligation quotes from 14+ companies online. No contact info, no spamming.	Go to site More Info	Compare	loading Fetching your data...
Dayforward Life Insurance		18 - 67 years old	$12,000	$500,000	from 10 to 27 years	No exams for some applicants	Dayforward allows you to protect your family with life insurance that protects your income.	Go to site More Info	Compare	loading Fetching your data...
Fabric		21 - 60 years old	$100,000	$5,000,000	10, 15, or 20 years	Depends on policy	No-exam term policies up to $1 million online, with the option to upgrade to permanent life insurance later.	Go to site More Info	Compare	loading Fetching your data...

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Bottom line

Life insurance companies will give you about a month to make up a missed payment. If you don’t pay up, your policy will lapse. Depending on your provider, you might be able to reinstate your policy, but you’ll want to do it as soon as possible to avoid taking another medical exam.

If you’re having trouble paying your premiums, search for life insurance companies with lower rates.

Frequently asked questions

• What happens if you die during the grace period?

  If you die during the grace period, your insurer is legally required to pay your beneficiary the full death benefit.

• What's the difference between the grace period and free look period?

  When you purchase life insurance, you’ll have at least 10 days to review and trial your policy. This is known as the free look period. It’s mandated by law, and some providers will give you up to 30 days to take your policy for a test run.

• Will I get my money back from a lapsed life insurance policy?

  No. Unfortunately, you won’t get your money back. But if you proactively surrender a permanent policy, you may receive the cash value.