What Does It Mean If Your Life Insurance Lapses? 
A life insurance policy will lapse , or cease to exist , when the planned premium is not paid on a timely basis . Most policies have a grace period , usually 30 days , in which the back premium can be paid before the policy lapses . In some cases a carrier will reinstate a lapsed policy if the back premiums are paid and the insured signs a statement indicating their health has not changed since the last premium was paid . 