What Happens When Your Life Insurance Policy Lapses?

What Does Lapse Mean in a Life Insurance Policy?

What Causes a Lapse in a Life Insurance Policy?

Can a Lapsed Insurance Policy be Restarted?

How to Avoid Life Insurance Policy Lapse?

What Is the Grace Period for Life Insurance Policies?

FAQs About Policy Lapses in Life Insurance

For how long can a life insurance policy be revived? up-arrow

An insurance policy is treated as 'lapsed' if the premium remains unpaid till the grace period. Generally, it is 15 days for monthly renewals and 30 days for yearly, half-yearly and quarterly renewals. If your policy lapses after the grace period, insurers often allow you to revive it any time before 5 years till the day of first unpaid premium.

Can I surrender a lapsed policy? up-arrow

If you fail to pay premiums after lock-in period, there will be two options for you. Either you can surrender the insurance policy or continue it without paying.

What is the difference between lapse and surrender? up-arrow

Lapse signifies the termination of an insurance policy, whereas surrender means that a surrender value has been paid out to the policyholder.

Can a lapsed life insurance policy be activated? up-arrow

Yes, you can activate a lapsed life insurance policy by recovering the premium arrears from the available amount under the policy as loan. However, the terms and conditions of insurance policies vary from insurer to insurer.