What Happens When Life Insurance Lapses? 
When life insurance lapses , the coverage ends . If the insured person would pass away after the policy lapses , there would be no death benefit paid to the beneficiary . There is a 30 day grace period after the premium is due , where you can pay the premium and keep the policy from lapsing . Once it is lapsed , it must be reinstated or you need to apply for a new policy . To avoid your policy from lapsing , be sure to keep your life insurance company apprised of any change in address -LRB- if your statements are mailed to you -RRB- or change of banks -LRB- if your premium is paid by automatic withdrawal -RRB- . 