What Does Lapsed Mean In Life Insurance?
11498 POINTSview profileJason GoldenzweigCo-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, NevadaThe term "lapsed" in life insurance means that the policy is no longer providing coverage in the event of the insured's death. This is usually due to a lack of premium payment. Each policy will provide a grace period (typically 30 days) from the premium due date to submit the necessary premiums to keep the coverage going. If the grace period has expired on the policy, you would likely need to apply for reinstatement with payment of back-premiums to put the policy back in force - evidence of insurability may be required depending on the carrier and how long it's been since the policy lapsed.Answered on March 17, 2014flag this answer.JPG)
63333 POINTSview profilePeggy MaceMost of the U.S."Lapsed" in life insurance means that the policy is expired. If the insured person were to pass away, the policy would not pay anything to his/her beneficiary. People generally end up with lapsed policies because they chose not to pay the premium, because they cancelled their policies, or they forgot to pay their premiums within the grace period. The best way to keep from forgetting is to set up an automatic bank draft to pay your premiums, and then make sure to tell your life insurance company if you switch banks.Answered on March 17, 2014flag this answer
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