What happens if premiums are not paid by the end of the grace period?

If premiums are not paid by the end of the grace period, the policy lapses and insurance protection ends. The grace period is a specific timeframe provided by the insurer during which the policyholder can make a premium payment after the due date without losing coverage. If the payment is still not made by the conclusion of this grace period, the insurer has the right to terminate the policy, resulting in a lapse of coverage.

This outcome underscores the importance of timely premium payments to ensure ongoing insurance protection. Once a policy lapses, the policyholder may need to reapply for coverage, which could involve new underwriting and possibly higher premiums based on their current health status.