Lapse

10 months ago

Insurance Glossary Team

1 minute

Plain English Definition: The termination of an insurance policy due to non-payment or other factors.

A lapse in coverage leaves you without insurance protection until the policy is reinstated or replaced.

Failing to pay your car insurance premium causes coverage to lapse, leaving you uninsured.
Missing health insurance payments results in a lapse, requiring a new policy to regain coverage.
Life insurance lapses if premiums are not paid on time.