What Happens When Life Insurance Policy Lapses? 
Really nothing happens when a life insurance policy lapses . That is to say the policy ends and there is no more insurance . There are a couple things that should happen = you should be notified that the policy is going to lapse and it should be explained how you can prevent that from happening . If the premiums are not paid up to keep the policy in force and it does lapse you should be notified of the provision to reinstate the policy and what steps to take and the time limit within which they must be taken . 