masa tenggang
Also called: grace period
Extra time to pay a late premium before the policy becomes lapse.
What it means
The grace period is an additional deadline after the premium due date during which the policy is still considered active. During the grace period, the policyholder can still pay the premium without losing benefits, according to the policy terms. If the premium is not paid until the grace period ends, the policy may become lapse. The length of the grace period differs between products.
Why it matters for families
The grace period gives room when the family is facing cash flow difficulties. If they misunderstand and miss this deadline, the policy can be cancelled and protection lost right when it is needed. Families should note the due date and prepare premium funds before the grace period ends.
Example
For example, the monthly premium is due on the 10th, and the policy gives a grace period of several days or weeks. If the family pays after that date but still within the grace period, the policy remains active. However, if the grace period passes, the policy status may change to lapse.
Common misunderstanding
Some people think paying the premium late immediately cancels the policy. The correction: there is still a grace period that gives a chance to pay before the policy is cancelled.