What happens if the insured does not make a premium payment within the grace period?

If the insured does not make a premium payment within the grace period, the policy lapses and coverage is lost. The grace period is a specified time frame after the premium due date during which the policy remains in force, allowing the insured to make the payment without losing coverage. If payment is not made by the end of this grace period, the policy effectively goes into lapse, meaning that the insurance company will no longer provide coverage, and the insured will not be entitled to any benefits under the policy.

In many cases, once a policy lapses, the insured may need to go through a reinstatement process to regain coverage, which often requires meeting certain criteria, such as paying overdue premiums and demonstrating insurability. This emphasizes the importance of timely premium payment in maintaining active life and health insurance coverage.