Definition - What does Lapse mean?
A lapse is when certain privileges cease to be in effect. In the context of insurance, it usually refers to a cessation of coverage. A lapse of coverage can occur if a policyholder fails to pay the premiums that they owe to the insurer.
Insuranceopedia explains Lapse
If a lapse of coverage occurs on an insurance policy, it means that the policyholder will not be able to get reimbursed for any claims during this period. Most insurance policies include clauses that specify what can trigger a lapse of coverage.