If you stop paying premiums on a term policy and the grace period (typically 30–31 days) passes without payment, the policy lapses, and the insurer will not pay a death benefit. Permanent policies with accumulated cash value offer nonforfeiture options: reduced paid-up coverage (a smaller death benefit with no further premiums required) or extended term coverage (full death benefit for a limited term funded by cash value). Once cash value is exhausted, permanent policies lapse too. Some policies also have an automatic premium loan feature that draws from cash value to keep coverage active.