Do you know what happens when you forget to pay your insurance premium before the deadline? In this blog we are going to discuss exactly that and give you further insights on the grace period and how it works.

What is Insurance Grace Period

An insurance grace period is the amount of time an insurance company can provide to a customer after they have missed a payment before the coverage is canceled.

An insurance grace period is a period of time during which the customer will continue to have coverage, even though they are behind on their payments. A grace period works by automatically renewing coverage for a specified period when the insured has missed a payment.

Your insurer has the option to void coverage for the duration, then restore it retroactively on your due date for the payment, as long as you paid the premium during the grace period.

For individuals who are receiving advance premium tax credits, the insurance company has to offer a 90-day grace period in which consumers may make up the missed premium payments and avoid having the consumer's coverage terminated.

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