Lapse
A lapse is when a Long-Term Care Insurance policy terminates due to missed premium payments.
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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.