What is the Definition of Grace Period?
What is the Definition of Grace Period?
(1) For insurance premium payments, a specified length of time following a premium due date within which the renewal premium may be paid without penalty. The length of the grace period is specified in a grace period provision that is found in a life insurance, health insurance, or annuity policy. (2) For purchases made on credit, a period of time between the date of a purchase and the date the lender begins to charge interest during which no interest accrues.
Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/
Label: Insurance
Theme: Dictionary of Insurance Terms
Other Questions: What is the definition of Annuity?
What is the Definition of Grace Period?
You can find random definition and meaning of insurance terms below:
Meaning of Net Annuity Cost in Insurance Terms
A monetary amount equal to the present value of future periodic payments under an annuity contract, calculated on a net basis, without any specific provision for expense loading. Contrast with Gross annuity cost. (See Annuity cost)
Meaning of Net Payment Cost Comparison Index in Insurance Terms
A cost comparison index used to compare life insurance policies that takes into account the time value of money and that measures the cost of a policy over a 10or 20-year period assuming the policy owner pays premiums over the entire period. Contrast with Surrender cost comparison index.
Meaning of No-Fault in Insurance Terms
Auto insurance coverage that pays for each driver’s own injuries, regardless of who caused the accident. No-fault varies from state to state. It also refers to an auto liability insurance system that restricts lawsuits to serious cases. Such policies are designed to promote faster reimbursement and to reduce litigation.
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