Lapse

The term "lapse" describes when a company terminates a Long-Term Care Insurance policy due to a failure to pay a premium. Lapses only happen after a period of multiple missed payments. 

Many policies protect against lapses with an unintentional lapse clause. These clauses notify a designated individual of the impending lapse in hopes of resolving the issue. You can read our article on Long-Term Care Insurance regulations to learn more.