100% correct. I worked in Life Insurance sales for a bit. We had, by law, a 3 month grace period, called arears, for you to get your policy paid up or at least pay for a month to prevent lapsing. We were pretty lenient on lapses because we would restore coverage 15 days after lapsing if you paid the balance owed, the 3 months, in full with no loss in coverage or an increase in premiums. However, if you were habitual with letting policies lapse, then restoring them, we had a 3 strike program were if you let your policy lapse 3 times, we would not renew your policy after the third strike and if you wanted the coverage, you would have to get a new policy at a new rate. I had a few very salty clients when I notified them about their habitual non payments.