In certain conditions, policy holder fails to pay the premium on due date then LIC still gives you extra time for making the payments without any payment of interest on the premium. This extra time period is called the grace period. Although there are exceptions in some plans of LIC. The policies where the premium is paid on the monthly basis, the grace time period is of 15 days from the due date of payment of premium. the policies where the payment mode is on quarterly basis, half yearly basis or annual basis then the grace time period for such policies is one month but it is not less than 30 days.