What happens if a premium is not paid?

When a premium is not paid, it's like the policy starts to hold its breath. Most policies have a grace period, usually about 30 days, during which it patiently waits, tapping its foot and looking at its watch, hoping you'll remember to pay up. If the payment arrives during this grace period, all is well—it's like you've apologized with a nice bouquet of flowers, and the policy forgives you, continuing as if nothing happened.

But if the grace period passes and the premium remains unpaid, the policy might pass out—meaning, it lapses. When a policy lapses, it's as if your financial security breaks up with you. No more protection, no benefits. It's like your umbrella deciding it won’t work anymore just as the rain starts.

Now, here’s the part about making future relationships—err, insurance policies—a bit trickier: If you let a policy lapse and then decide you want to get back together with life insurance, it might not be as simple as picking up where you left off. You might need to go through the whole courtship process again—new application, medical exams, higher premiums because you've aged or your health has changed. Basically, life insurance might play hard to get.

So, it’s best to keep those premiums paid.