Grace period in LIC policy 11. September 2015 LIC (0) Grace period is the time period from the due date of the policy, in which the policy will be in force and the insurance cover will be available for the insured person. If the policy due date has been missed for premium payment, the policy holder shall pay the premium along with the late fee in the grace period and he shall continue the policy so that the life cover will continue. Post the completion of this grace period, the life cover will be lost. Also, if the grace period has completed and if the policy holder wishes to continue the policy, he has to revive the policy with necessary underwriting formalities by LIC.