What does it mean when a policy is described as "lapsed"?

A policy described as "lapsed" indicates that it has been terminated due to non-payment of premium. This situation arises when the policyholder fails to make the required premium payments by the due dates. As a result, the insurance coverage is no longer in effect, and any claims that might arise after the lapse would not be covered.

In general practice, policies may include a grace period that allows the policyholder some additional time to make payments before the policy officially lapses. However, if payments are not made within that period, the coverage is lost. It is important for policyholders to understand how lapses can affect their insurance needs and to ensure timely premium payments to maintain continuous coverage.