---
title: "What Is Lapse? Definition | Epic Life Glossary"
description: "A lapse happens when a life insurance policy ends because the owner did not pay the premium by the end of the grace period. Coverage stops unless the..."
url: https://epicline.preview.multisites.ai/glossary/lapse
publisher: Epic Life Group
apply: https://epicline.preview.multisites.ai/apply
quote: https://epicline.preview.multisites.ai/get-a-quote
---

Policy mechanics

# Lapse

A lapse happens when a life insurance policy ends because the owner did not pay the premium by the end of the grace period. Coverage stops unless the policy is reinstated.

## Why it matters

Lapses are costly. Families lose protection, and they may need new underwriting at an older age and higher rate. For agents, early lapses can cause commission chargebacks. A policy with cash value may stay alive through nonforfeiture options or an automatic premium loan. Reinstatement rules and time limits vary by carrier and state.

Source: [law.cornell.edu](https://www.law.cornell.edu/wex/lapse)

[Read next, for agentsLife insurance chargebacks explained: how they work and how to protect your cash flow](https://epicline.preview.multisites.ai/guides/life-insurance-chargebacks)

## Where we use this term

-   [How much does final expense insurance cost, and what sets the price?](https://epicline.preview.multisites.ai/guides/final-expense-insurance-cost)
-   [Your first 90 days as a telesales life insurance agent: a week-by-week ramp](https://epicline.preview.multisites.ai/guides/first-90-days-as-a-telesales-agent)
-   [Inbound calls vs live transfers vs aged leads: how to compare cost per sale](https://epicline.preview.multisites.ai/guides/inbound-calls-vs-live-transfers-vs-aged-leads)
-   [Indexed universal life (IUL) explained: caps, floors, costs, and risks](https://epicline.preview.multisites.ai/guides/iul-explained)
-   [How to get a multi-state life insurance license: resident first, then nonresident](https://epicline.preview.multisites.ai/guides/multi-state-life-insurance-license)

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