Grace Period – Life

By Hanson & Ryan, Inc.

Mother playing board game with two children

Currently, traditional life insurance policies include a grace period of not less than 30 days, and in certain circumstances for account value life insurance policies not less than 60 days. In response to the disruption caused by COVID-19, the Department is directing all licensed life insurers to provide their policyholders or certificate holders who may be experiencing a financial
hardship due to COVID-19 with at least a 90-day grace period to pay life insurance and annuity contracts premiums so that insurance policies or contracts are not cancelled for nonpayment of
premium during this challenging time due to circumstances beyond the control of the insured. A policyholder may elect this 90-day emergency grace period to begin retroactively on April 1, 2020
or opt for the grace period to begin on May 1, 2020. During this extended grace period, life insurance companies cannot cancel any insurance policy for nonpayment of premium.

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