Sometimes the policyholder may not be able to pay premiums because of various circumstances. In such a case if the premiums have not been paid for the first three years then your policy will lapse at the end of the grace period.
However, if you have paid all the premiums of the first three years, then your policy is converted to a paid-up policy with a reduced Sum Assured. The maturity or death benefit will be calculated as per the reduced Sum Assured, in case the policy is discontinued after three years. If you have paid at least five years’ premiums then Guaranteed Cash Back and Cash Bonus (if any) are paid based on reduced Sum Assured.
Also, do keep in mind that you have the option to revive the lapsed/paid-up policy during the revival period of two years from the start of first unpaid premium, subject to the revival conditions.