Lapse
What Does 'Lapse' Mean?
This is the termination of a Long-Term Care Insurance policy due to the policyholder's failure to pay the required premium. Many policies have protections against unintentional lapses
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The term "lapse" describes when a company terminates a Long-Term Care Insurance policy due to a failure to pay a premium. Lapses only happen after a period of multiple missed payments.
Many policies protect against lapses with an unintentional lapse clause. These clauses notify a designated individual of the impending lapse in hopes of resolving the issue. You can read our article on Long-Term Care Insurance regulations to learn more.