YOU ASK:

What is the definition of Lapse?

WE ANSWER:

"Lapse" refers to the end of the coverage by virtue of unpaid premiums.

An insurance policy is considered lapsed when the renewal premiums are not paid and the grace period has ended. When a policy lapses it no longer provides the insurance coverage that was stated in the policy.

The insurance owner whose policy lapsed still has the option to reinstate the policy if he pays back past due premiums plus any penalties and processing fees incurred. The insured may also need to provide proof of insurability. If it is proven that there are no adverse changes to the condition, insurability status, or health of the insured person, the policy can be reinstated and the coverage can resume.

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