Lapse

A lapsed policy is no longer in force and no claim is payable under it. Term plans usually have no value once lapsed.

Savings-type policies may have acquired a paid-up value by then, in which case something remains rather than nothing. A lapsed policy can often be revived within a defined period.

Related terms

• Grace period A window after a missed premium during which the policy remains in force.
• Paid-up value A reduced sum assured that continues after premiums stop, once enough have been paid.
• Revival Restoring a lapsed policy to full force, within a defined period and on the insurer's terms.

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