If your health insurance policy lapses, the biggest concern is losing your coverage. Consequently, the insurer will not pay for any medical expenses you have during that time. Moreover, a lapsed policy could mean losing any accumulated no-claim bonus you've built up. The waiting period already served for covering pre-existing diseases will also be lost, meaning you may need to restart the waiting period with a new policy. To reinstate a lapsed policy, insurers may charge a reinstatement fee, and they might also deny coverage based on an underwriting assessment. Hence, it is important to pay premiums on time and keep the policy active to utilise all the benefits.