What is a common outcome of a lapse in coverage?

A common outcome of a lapse in coverage is that the insured may lose coverage for claims during the lapse. When an insurance policy lapses, it means that the policyholder has failed to pay the premium or fulfill a requirement that keeps the policy active. As a result, any claims that arise during the period when the coverage is inactive may not be covered by the insurer. This could leave the insured vulnerable to financial loss, as they would not be able to seek compensation for any incidents that occur while the policy is not in effect.

In this scenario, it is vital for policyholders to understand their responsibilities regarding premium payments and other obligations to maintain continuous coverage. If there is a lapse, they risk not having any insurance protection during that period, which can have significant financial implications.