Definition: Insurance grace period is a period in which insurance policyholders are entitled to receive certain benefits from an insurer, without having to pay for them within their current premium payment schedule or by paying off the outstanding balance on the policy. The insurance grace period refers to the time during which a person who has purchased an insurance policy is allowed to claim benefits and receive compensation without having to pay for those benefits at any point in the future. The specific duration of this time may vary from insurer to insurer, but it generally lasts until the expiration of the policy's coverage period. The insurance grace period can be either temporary or permanent. Temporary insurance grace periods are only available during certain periods (usually within a year) and do not have an expiration date, while permanent insurance grace periods typically last for life or up to 10 years, but may also require payments to settle claims. An example of a long-term insurance grace period could be provided by a health insurance policy that offers lifetime benefits. This type of policy would allow the insured to receive benefits as long as they meet certain criteria and pay no premium during their coverage period.
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