Documentation - Policy Condition

Grace Period

• The "Grace Period" Clause grants the policyholder an additional period of time to pay the premium after it has become due
• The standard length of the grace period is one month or 31 days computed from next day after due date.
• The premium however remains due and if policyholder dies during this period, the insurer may deduct the premium from the death benefit. if premium remain unpaid even after grace period is over, the policy would then be considered lapsed and the company is not under obligation to pay the death benefit but for the amount under Non Forfeiture provisions.

Lapse

If the policy premium has not been paid even during days of grace, the policy is deemed to be lapsed.