Definition of policies in force

An insurance policy such as automobile, homeowner's and life insurance are in force for a specific time period such as one, five or 10 years. When a policy is in force, it is active.


Policies will be cancelled when monthly premiums are not paid on a regular basis. Some insurance companies will allow a grace period before the policy is cancelled. Cancelled polices are no longer in force.

Time Frame

Depending on the insurance company and the state in which you reside, a grace period can range from 24 hours to 30 days.


When a policy is in force, you are able to utilise all of the benefits and features of the policy that apply to your specific situation. You can file a claim if you have an auto accident. If a life insurance policy is in force, the beneficiary is eligible to receive the proceeds if the insured passes away.


Some insurance companies will cancel your insurance policy if you violate the terms and conditions of the policy. Insurance fraud can lead to cancellation of a policy.


If an insurance policy lapses or is no longer in force, you could face some type of penalty. Depending on the type of insurance, your premiums could increase once you reinstate the policy.

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About the Author

Melvin J. Richardson has been a freelance writer for two years with Associated Content, and writes about topics such as banking, credit and collections, goal setting, financial services, management, health and fitness. Richardson has worked for several banks and financial institutions and gained invaluable experience and knowledge. Richardson holds a Master of Business Administration in Executive Management from Ashland University in Ashland Ohio.

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