What Happens When Life Insurance Lapses? 
Depends on your policy . If you have Term coverage and you do not pay your premium , it generally will end forever , with usually a 30 day grace period to pay . With Permanent coverage , like either whole life or universal , you may get your premium paid from your equity in the policy , until that is exhausted , but at that time it will truly lapse also . This means that you no longer will have any coverage at all . Depending on what loans you may have taken out , you may have some cash value left that was not yet applied to the premium , but if you get that back , it will be taxable . Best to try to keep up at least minimum payments , meaning do not get more insurance than you can truly afford . Something is always better than nothing in your insurance coverage ! Thank you . GARY LANE . 