What typically occurs if a policyholder misses a premium payment?

When a policyholder misses a premium payment, the typical procedure is that the policy enters a grace period before it may lapse. A grace period is a specified duration during which the policyholder can still make the payment without losing coverage. This period generally lasts for 30 days, but it can vary depending on the specific policy terms and the insurer's guidelines. During this time, the coverage remains in effect, allowing the policyholder to pay the overdue premium without the immediate consequence of policy cancellation.

This provision is designed to provide policyholders a buffer in case of unexpected circumstances that prevent timely payment, giving them the opportunity to retain their insurance coverage even if they inadvertently miss a payment. It is important for policyholders to be aware of their specific policy terms regarding grace periods to avoid potential loss of coverage.