A grace period is additional time allowed to pay a renewal or instalment premium after its due date under specified conditions. It is common in long-term life insurance, but treatment of coverage and overdue amounts depends on the policy. It should not be assumed to apply to every non-life renewal.
A Nepalese policyholder should record due dates and confirm how an insured event during the grace period would be handled. If payment remains overdue, the contract may lapse or move to paid-up value where eligible. A grace period is different from a waiting period, which delays particular benefits.