What happens if I miss a life insurance premium payment?

If you miss a payment, your policy does not immediately lapse. Most policies include a grace period of 30 to 31 days during which coverage remains in force and you can pay without penalty. If payment is not made by the end of the grace period, the policy lapses and coverage ends. Some permanent policies can use accumulated cash value to cover missed premiums automatically. If your policy does lapse, many insurers allow reinstatement within a set window, typically two to five years, if you pay back premiums and provide proof of insurability.