Legal Definitions - lapsed policy

A lapsed policy is an insurance policy that is no longer active because the policyholder has not paid the required premiums. This means that the policy is no longer providing coverage for the insured person or property. Most policies have a grace period of 30-31 days after nonpayment of premiums, but after that time, the policy will lapse. It is important to keep up with premium payments to ensure that your insurance policy remains active and provides the coverage you need.