Life insurance is a long-term contract in which you pay premiums over several years. Of course, some plans give you the option of paying all the premiums upfront, through the single premium mode, but most plans need you to pay regularly: either every year throughout the policy term or for a limited number of years. But what happens if you stop paying the premiums?
In the case of a term plan, which only charges you for the insurance cover, the policy lapses after the grace period. And if you don’t revive the policy, then you simply forfeit all the premiums you had paid.
