The first thing to do is determine if your policy is still under the reinstatement period. If not, your coverage is terminated in the month the lapse occurred. If there are mitigating circumstances, like an admin error, you can appeal to the issuing life insurance company for a possible exception.
When a life insurance policy lapses, it means that the policy would no longer pay the death benefit if death of the insured person would occur. Policies lapse due to non-payment; whether by accident or on purpose.
When the policy lapses, there is usually a chance to reinstate it by filling out some paperwork and making up for the missed premium. However, reinstatement requires that the insured person's health has not changed from the health rating it was when the policy was originally purchased. If unable to qualify for reinstatement a new policy will be needed.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
Really nothing happens when a life insurance policy lapses. That is to say the policy ends and there is no more insurance. There are a couple things that should happen = you should be notified that the policy is going to lapse and it should be explained how you can prevent that from happening. If the premiums are not paid up to keep the policy in force and it does lapse you should be notified of the provision to reinstate the policy and what steps to take and the time limit within which they must be taken.
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When the policy lapses, there is usually a chance to reinstate it by filling out some paperwork and making up for the missed premium. However, reinstatement requires that the insured person's health has not changed from the health rating it was when the policy was originally purchased. If unable to qualify for reinstatement a new policy will be needed.