What Happens When Life Insurance Lapses? 
When life insurance premiums have not been paid in a timely manner , a lapse occurs . Generally there is a period of time , perhaps 30 days in which the owner has the ability to pay back premiums to bring the policy current . If death of the insured occurs during this period a premium is simply deducted prior to paying the death benefit . After 30 days the policy in no longer in force but may be reinstated with a statement of good health from the insured . After that , a new application and underwriting will need to be completed . 