What does reinstating a lapsed policy typically require?

Reinstating a lapsed life insurance policy generally involves payment of back premiums alongside proof of insurability. When a policy lapses, it means that the insured has failed to pay the premium by the due date, which can lead to the policy being terminated. To reinstate the policy, the policyholder must typically bring the overdue payments up to date, which includes all premiums that were missed during the lapse period.

Additionally, insurers often require proof of insurability to ensure that the insured still qualifies for coverage based on their current health status. This process helps the insurer assess any potential risks associated with reinstating the policy, given that the insured's health may have changed since the original application. It is a safeguard for the insurance company to manage potential claims based on newly emerged health conditions.

This requirement is standard practice in the insurance industry and serves as an important step to ensure that both the insurance provider and policyholder are protected moving forward.