Agent Owner, Gilmore Insurance Services, Marysville, Washington State
When does a life insurance policy lapse? When there is a failure to make timely payment or when if cash values are involved, when there is no longer sufficient cash values to pay the premiums. A lapsed policy can be reinstated anywhere from 30 days to 6 months depending on what your state has established.
Your life insurance policy may lapse for the following reasons:
If you stop paying your premiums
If your cash value has been depleted (whole life insurance)
If your policy term has ended (term life insurance)
Any other reasons for a lapse would be outlined in your policy. Your agent or your insurance company should be willing and able to explain your policy details further.
Life Insurance Policy Lapse from the nonpayment of scheduled premium. As long as the guaranteed premium is pad on time it shouldn't expire or lapse. But generally speaking current assumption universal life insurance has variables that have the potential to underperform or increase in cost which could lead to a policy lapsing or expiring.
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If you stop paying your premiums
If your cash value has been depleted (whole life insurance)
If your policy term has ended (term life insurance)
Any other reasons for a lapse would be outlined in your policy. Your agent or your insurance company should be willing and able to explain your policy details further.