Short answer: Delaware life policies must give a 30-day grace period (or one month of at least 30 days) for premiums after the first, and the insurer can charge no more than 6% a year in interest for the grace days. A policy becomes incontestable after two years in force during the insured's lifetime, except for nonpayment.
This guide is general consumer information for Delaware life insurance buyers. It isn't legal advice or a coverage determination. Policy wording, underwriting and the statutes linked below control.
Grace period and the 6% cap
Missed a renewal premium in Wilmington or Dover? 18 Del. C. 2906 gives you 30 days (or, if the insurer chooses, a calendar month that is never shorter than 30 days) to catch up on any premium after the first. Coverage doesn't pause while you're late. Delaware also caps what the insurer can charge you for being late: no more than 6% a year, prorated for the days you used. If a death claim comes in before you pay, expect the unpaid premium to be netted out of the check.
Two-year incontestability, and what it doesn't block
18 Del. C. 2908 closes the window for challenging your application two years after issue, as long as the insured is alive for those two years. Nonpayment is still a defense, and the insurer can carve out disability and accidental-death riders. Delaware adds a twist in section 2917: an incontestable clause only bars attacks on the policy's validity. Exclusions written into the policy (an aviation exclusion, say) can still be raised at any time. Read the exclusions page before you sign.
Insurer financial strength
To ask about an insurer's financial strength or solvency under Delaware regulation, contact the Delaware Department of Insurance.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Delaware.
Frequently asked questions
How long is Delaware's life insurance grace period?
30 days, or one month of at least 30 days, under 18 Del. C. 2906.
Can a Delaware insurer charge interest during grace?
Yes, but not more than 6% a year for the grace days.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.