A policy holder has to remit the money towards the policy in time. However, there will be a grace period, subsequent to last date of paying premium and the policy would be active during that period also. Please check up if that period is also lapsed. Regarding the other policy, LIC can not deny for the reason that the policy holder has died of cancer and it is not the fault of the policy holder to acquire any disease. The LIC before giving policy would have gone through the records, including her health medical record, and then the LIC would have decided to give her a policy. Why to take a Life insurance policy, when the life is cut short by cancer and the insurer refuses to pay for the untimely death. Then what for the policy is taken? Complain against the insurer before the consumer forum to get the money.