No one wants to make payments for years on a term life insurance policy and then have the policy expire because of a missed payment. And who does not fall behind on bills at some point in their life?
In today's difficult times it is certainly understandable how someone could have a hard time keeping up with their bills. Car payments, mortgage payment, credit card bills, food, utilities, high gas prices, and the general costs of living are a lot to be responsible for. God forbid you should have unexpected medical expenses or need to send a child to private school or college. If you are one of the many that have been laid off in these times of high unemployment or have had to accept a much lower paying job than you once had just to make ends meet and provide for you family, you are faced with hard decisions and trying to understand your choices and the consequences.
A lapsed term life insurance policy is a policy that has been terminated upon the policy owner's failure to pay the premium within the grace period. The grace period will vary depending on the insurance company and when the contract was first agreed upon, as insurance company rules can change from time to time. If you are in the situation of having fallen behind in your bills, and your insurance premium is not being paid on time then you need ot review your contract as to the definition of the grace period for late payments.
The consequences for falling behind on payments of different types of bills will vary. Each individual has to prioritize his needs. For term life insurance coverage it is pretty cut and dried as to consequences. The grace period is generally adhered to closely by the provider and cancellation is quick for non-payment within that time.