Reinstatement

Reinstatement is the process of restoring a life insurance policy that has lapsed due to non-payment of premiums back to its original in-force status. Most policies allow reinstatement within three to five years of the lapse date, subject to payment of all past-due premiums with interest and satisfactory evidence of continued insurability. This typically requires the policyholder to complete a new health questionnaire and possibly a medical exam. Reinstating an existing policy is usually preferable to applying for new coverage, as the original policy's terms, cost basis, and — in some cases — contestability period may be retained. Reinstatement restarts the incontestability clock from the reinstatement date.