If you do not pay your premium on time, you run the risk of your policy lapsing. Most insurers generally offer you a grace period within which you can catch up on the payments you’ve missed. However, once the grace period is up, your life insurance policy lapses. This means that you will no longer be eligible to enjoy the protective cover of death benefits or maturity benefits. If you find yourself in this situation, you can reinstate your policy by contacting your insurer and paying all the outstanding premiums along with the interest and penalties charged on them, if any.