When can my policy lapse and what can I do if this happens

When can my policy lapse and what can I do if this happens?

Your policy can lapse or terminate when a premium is not paid by the end of the grace period, if the policy has no cash value. If the policy has adequate cash value, you can borrow against it to pay the premium and maintain your insurance. You could also use one of the policy's non-forteiture options which allow you to:

(1) surrender your policy and collect its cash value;

(2) purchase a reduced amount of paid-up cash value life insurance;

(3) purchase the same amount of term insurance that you purchased originally and extend your coverage for a specified time period.