What is the grace period on a life insurance policy and what happens if I miss a payment?

Every life insurance policy in Nevada is required by state regulation to include a grace period — a window of time after a missed premium due date during which the policy remains in force and the insured remains covered. Nevada regulations generally require a grace period of at least 30 days.

During the grace period: coverage remains fully in force. If the insured passes away during the grace period, the death benefit is still paid — minus the unpaid premium. The beneficiary receives the benefit amount less the overdue premium.

If the policy lapses (premium is not paid within the grace period): the policy terminates. For term life, coverage simply ends. For permanent life, the carrier applies any accumulated cash value to extend coverage (using the non-forfeiture options specified in the policy) before lapsing.

Reinstatement: most policies allow reinstatement within a specified period (often 3–5 years) after lapse, subject to proving insurability (completing a new health questionnaire or medical exam) and paying all back premiums plus interest.

Automatic payment setup: the simplest way to avoid grace period situations is automatic premium payment through a bank account or credit card. Most carriers offer this option. Agents in our network recommend automatic payment to prevent accidental lapses. Actual grace period terms are specified in each carrier's policy contract.