Meaning
When a policy lapses, its benefits cease, requiring attention to avoid financial loss.Definition
Policy lapse occurs when premium payments are not made by the due date or within the grace period, leading to the termination of the policy’s coverage and associated benefits.Common Causes
Common causes include forgotten UPI payment reminders, financial difficulties, or changes in personal circumstances.Potential Consequences
Loss of accumulated benefits, forfeiture of premiums paid, and the need to reapply for coverage, often at a higher premium, are potential consequences.Author
