Guarantee Funds

These are the amount of money used to recover policyholders from any possible liabilities resulting from the failure or closure of insurance companies.

All insurance companies that are licenced must consider the possible bankruptcy of their insured liabilities, hence be required to recover their insured or policyholders from future debt should the insurance company fail to operate.

Grace Period

This refers to the time period after the due date of insurance payment during which a policyholder is allowed to pay for an insurance coverage. This is a practise by some insurance companies that grant their insured the ability to pay for coverage right after the due date of their policy.

Some insurers would rather not allow policyholders to pay for insurance coverage after the expiry date. It could be a good thing to opt to pay for coverage online especially if you are insured under an insurance company that does not allow insurance payment after due date, giving room for lack of delayed insurance paymennt.