Reinstating a Policy

Reinstating a policy refers to the process of restoring insurance coverage after it has lapsed due to non-payment of premiums or other policy violations. When a policy is reinstated, it becomes active again with the same or similar terms as before the lapse, subject to approval by the insurer. Most insurers allow reinstatement within a specific timeframe, typically up to one year after the lapse date, although the exact period depends on the policy type and the insurer’s rules.

To reinstate a policy, the policyholder usually must pay all overdue premiums, any applicable interest or administrative fees, and sometimes provide updated evidence of insurability. The insurer may review the insured’s health or risk profile before accepting reinstatement to ensure the coverage remains appropriate and sustainable.

Example:

If your life insurance policy lapsed because you missed three monthly payments, your insurer may allow reinstatement within six months if you pay the overdue premiums and complete a short health questionnaire confirming that your condition has not changed.

What to Watch For:

Act quickly if your policy lapses, as reinstatement options become more limited over time. During the lapse period, no claims will be paid, and any medical issues that arise could affect your eligibility for reinstatement. Once the policy is reinstated, the coverage resumes as if it had been continuous, but exclusions or waiting periods may apply if new medical information is disclosed.