Which of the following actions can lead to a life insurance policy lapse?

A life insurance policy can lapse when premium payments are not made as required, specifically after the grace period has expired. The grace period is a designated timeframe, typically 30 days, in which the policyholder can pay overdue premiums without jeopardizing coverage. If the premiums remain unpaid at the end of this period, the policy is considered lapsed, meaning the insurance coverage is no longer in effect, and the policyholder will not receive any death benefit payouts.

Choosing additional riders, changing the beneficiary designation, or transferring ownership of the policy do not inherently lead to a lapse. Riders are optional benefits that can enhance a policy's coverage; they do not affect the fundamental requirement of maintaining premium payments. Changing a beneficiary designation is also a common administrative change that does not involve premium payments. Transferring ownership usually concerns policy rights and obligations rather than the status of premium payments. Thus, the most critical factor in maintaining a life insurance policy is the timely payment of premiums, which underscores why failing to pay them after the grace period leads to a lapse in coverage.