What is typically the outcome of not paying premiums on a life insurance policy?

When premiums on a life insurance policy are not paid, the typical outcome is that the policy lapses. Lapsing means that the insurance coverage becomes void and the insurance company is no longer obligated to provide the benefits outlined in the policy. This generally occurs after a grace period during which the policyholder can still pay the premium without losing coverage. If the premium remains unpaid after this grace period, the policy terminates, and the insured loses both the life insurance coverage and any associated cash value (if applicable).

Other options, such as automatic renewal or increases in death benefit or cash value, do not occur when premiums are unpaid. Automatic renewal requires the payment of premiums to maintain coverage, and a lapse would prevent that from happening. Additionally, the death benefit does not increase with a missed payment; rather, the absence of premium payments leads to a complete loss of coverage. Similarly, the cash value cannot double if the policy is not active, as the accumulation of cash value is contingent upon ongoing premium payments.