1. A period of time after a debt has become due for payment during which no new fees, penalties, or interest are accrued. Our new student credit plan offers an additional 30-day grace period on all credit card purchases.

2. A period of time after an insurance premium has become due for payment during which the terms of the policy remain active and in effect. Luckily, I was still within the grace period for my home insurance policy when the basement got flooded, or else I don't know how I would have afforded the repairs!

3. By extension, any period of time following a deadline during which no penalty is issued. Due to his mother's sudden death, James was given a grace period of three weeks to submit his dissertation.