Which of the following is typically NOT a reason for policy lapses?

The reason for policy lapses that is typically not included is the death of the insured. When the insured person passes away, the life insurance policy does not lapse; rather, it triggers a payout of benefits to the designated beneficiaries. The primary purpose of a life insurance policy is to provide financial protection to loved ones upon the insured's death. Therefore, death is a condition that fulfills the policy, rather than a situation that leads to its termination.

In contrast, failure to pay premiums, excessive withdrawals, and loan repayment issues can all result in a lapse. If premiums are not paid, the insurer may terminate the coverage. Excessive withdrawals can deplete the cash value and lead to insufficient funds to cover the policy costs, potentially causing a lapse. Similarly, failing to repay loans taken against the cash value may also result in the policy being canceled if it leads to an unpaid balance that exceeds the policy’s value.