What Is Lapse?
A lapse is when a policy ends because a required premium was not paid. In life insurance, a lapse means coverage stops and the death benefit is no longer in force; many policies have a grace period (often 30 days) and, for cash-value policies, may allow automatic premium loans to prevent lapse.
Why it matters
A lapsed policy can be hard or expensive to replace later (age and health change), so setting up auto-pay is the simplest guard.
Common confusion
A lapse is not a cancellation you requested — it is a non-payment termination, which can sometimes be reversed in the grace period.
Frequently Asked Questions
Can I reinstate a lapsed policy?
Often within 3–5 years if you repay missed premiums (with interest) and prove insurability; cash-value policies may reinstate more easily.
What happens to my cash value on lapse?
In a grace period the insurer may use it to pay the premium; after that, a surrendered policy may pay non-forfeiture value depending on the contract.