Lapsed Policy

Lapsed Policy

The termination of an insurance policy due to inaction on the part of the policyholder. In general, lapses occur if the policyholder fails to pay premiums. In this case, the right to receive the benefit if an insured event occurs ceases to exist.
References in periodicals archive ?
If you have a lapsed policy and a bad insurance credit score, you'll probably pay much more than someone with a lapsed policy and a healthy credit history, Suarez says.
A lapsed policy or unpaid credit-card bill could create financial problems down the road, so try to learn as much as possible about your financial position when you are leaving an abusive situation.
The firm said that the facility would enable customers to reinstate a lapsed policy and pay their premium online.
Mostly, a lapsed policy can only be revived by payment of due premiums along with applicable interest and "declaration of good health" by the policy-holder.
Young breadwinners simply cannot afford adequate protection with whole life insurance and, typically, end up either grossly underprotected with a lapsed policy or both.
Having a lapsed policy - caused by not paying a bill on time or by allowing a gap between a current policy and a new policy - can be a red flag for insurance companies.
Life and health insurance earnings can be affected by the levels of employment and consumer spending, variations in mortality and health trends, and changes in lapsed policy rates.
Having a lapsed policy can be a red flag for insurance companies.
Because mail and delivery services have been disrupted throughout the country, Zurich Life premium payments and lapsed policy notices due through the end of September have been granted a 30-day extension.