Why Do Life Insurance Policyholders Lapse? 
Life insurance policyholders do n't lapse per se , but life insurance policies do . When a life insurance premium bill is received , there is a stated due date for the premium . The life insurance company then provides an additional 30 days past the due date before the policy lapses . Technically , coverage stops at the end of the 30 day lapse period if no premium is paid . After the lapse period , there is a 30 day reinstatement period , in which there is no coverage , but the missed premiums can be paid to put the policy back in-force . If premiums are not paid during the reinstatement period , the only way to continue coverage is to go back through medical underwriting . 