Policy lapse is the loss or suspension of active protection following failure to meet a requirement such as paying a premium. The consequences vary by product: some life policies may retain a reduced paid-up value, while others may cease without ongoing benefits. Lapse is distinct from deliberate cancellation.
For a Nepalese family, missing life insurance instalments can create a gap precisely when financial protection is needed. Ask whether revival is available and what evidence or payments it requires. Resuming payments without formal acceptance may not automatically restore all previous coverage.