Definition
Lapse (ekpnoi)
A lapse is when a policy ends and is not renewed — usually because the expiry passed or the premium went unpaid — so you have no cover from that point. New losses are not paid. Reinstating may require a fresh application, and continuities such as a waiting period you have already served can be lost.
Also known as: Lapsed policy
A lapse is different from a cancellation. Cancellation is a deliberate act — you or the insurer end the contract during its term. A lapse often results from inaction: you let the expiry pass, or a payment did not go through. The result in both cases is the same — you are no longer insured.
The costly part of a lapse is not only the gap in cover. When you re-insure, the insurer may ask for a fresh application, re-assess the risk, and not recognise continuities you had already earned. That is why it is almost always better to renew in time than to let a policy lapse.
In your own policy, find the expiry date and make sure the premium is paid and up to date. If the expiry is near or you are in any doubt, contact your insurer or advisor before the expiry date. PolicyWallet alerts you to upcoming expiries so you can act in time.
Upload your policy — free analysisFrequently asked questions
Can I reinstate a lapsed policy?
Sometimes, but it is not guaranteed. The insurer may allow it within a time window, ask for a fresh application, or re-assess the terms. Ask your insurer as soon as possible.
What is the difference between a lapse and a cancellation?
Cancellation is a deliberate ending of the contract during its term; a lapse is the end without renewal, often through inaction. Both leave you without cover.
Related
Educational content, not insurance advice. PolicyWallet explains what the term means and helps you find it in your own document — it does not assert what your policy covers.