What typically happens to insurance benefits if a policy has lapsed for more than 30 days?

When a policy has lapsed for more than 30 days, coverage for claims during that period is typically lost. A lapse in an insurance policy means that the policyholder has failed to pay the premiums on time, leading to a temporary stop in coverage. In most insurance contracts, if the policy is no longer in force due to non-payment for an extended period, any claims that arise during that lapse will not be honored by the insurer. Essentially, the protection that the policy provided ceases during the time that the premiums are not being paid, which is why claims cannot be accepted for occurrences during that lapse.

This understanding is crucial for policyholders as it underscores the importance of maintaining premium payments to ensure continuous coverage. Additionally, recognizing the implications of a lapse can encourage timely renewal or reinstatement actions to avoid gaps in protection.