What typically happens if premiums are not paid within the grace period?

If premiums are not paid within the grace period, the policy typically lapses due to non-payment. The grace period is a specified time after the premium due date during which the policyholder can make the payment without losing coverage. If the payment is not received by the end of the grace period, the insurance company will terminate the policy, and the coverage will no longer be in effect.

This process is in place to protect both the insurer and the insured. It allows the policyholder a chance to pay overdue premiums and maintain their coverage, but once that time limit is reached without payment, the policy cannot be kept active. The policyholder may then need to go through the process of reinstating the policy, which can involve additional requirements or waiting periods.

Understanding how the grace period works and the consequences of non-payment is crucial for policyholders, as it affects their access to health and life insurance benefits.