Insurance Grace Period Definition. The grace period is defined in the contract of your policy and provides you with the opportunity to maintain coverage even if you miss a payment. Clients can pay the premium with no interest charged, and the policy remains in force.
Insurance policy grace period law and legal definition. A short period after your monthly health insurance payment is due. An insurance grace period is a defined amount of time after the premium is due in which a policyholder can make a premium payment without coverage lapsing.