What is unlapsed definition?

The term "unlapsed" refers to a situation in which a policyholder fails to make a premium payment by the due date, but the insurance policy remains in force and coverage continues. This may occur because the insurance company has a grace period during which coverage will remain in effect even if a payment is missed, or the policy may have provisions for automatic premium loans or cash value withdrawals that can be used to cover the missed premium. The term "unlapsed" is often used in the context of life insurance, where the policyholder's failure to make a timely payment could lead to a forfeiture of coverage or a loss of accumulated cash value.