If you stop paying premiums on a term life insurance policy, the policy will typically lapse after a designated grace period (usually 30 to 31 days), resulting in the immediate termination of your coverage and death benefit. For permanent or whole life policies with accumulated cash value, the insurer may automatically draw from your cash reserve via an automatic premium loan to keep the policy active, or use the cash value to purchase reduced paid-up insurance, preventing sudden loss until funds are exhausted.
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