What is the consequence of failing to pay life insurance premiums?

When premiums for a life insurance policy are not paid, the primary consequence is that the policy may lapse and become inactive. This means that the insurance coverage is no longer in effect, and the policyholder will no longer have protection under that policy. Policies usually have a grace period during which the policyholder can make the payment without losing coverage, but if payment is still not made after that period, the policy can lapse entirely.

This lapse means that the insured will not receive any death benefit, and any cash value that may have accumulated in a permanent life insurance policy could also be affected based on the terms of the contract. Therefore, understanding the importance of maintaining premium payments is crucial for keeping the life insurance coverage active.