Which scenario would likely lead to an "insurance policy lapse"?

An insurance policy lapse typically occurs when the policyholder fails to pay the premiums on time. When premiums are not paid, the insurer may eventually terminate the policy, leading to a lapse in coverage. Policies often have a grace period allowing for late payments, but if the payment isn't made within that timeframe, the policy becomes inactive.

In contrast, paying premiums in advance would ensure that the policy remains active and protects against lapses. Adjusting coverage levels or increasing the coverage amount does not inherently cause a lapse; these actions might even be accompanied by a recalculation of premiums but would not directly affect the status of the policy in terms of lapsing. Thus, failing to meet premium payment deadlines is the primary trigger for this issue.