Reinstatement
The process of restoring a life insurance policy that has lapsed due to non-payment of premiums. Reinstatement typically requires the policyholder to pay all past-due premiums plus interest and may also require proof of continued insurability.
Detailed Explanation
Reinstatement can be an option if you want to get your old policy back after it has lapsed, but it's not always guaranteed.
Practical Example
Michael's life insurance policy had lapsed. He decided to reinstate it and had to pay all the missed premiums with interest and also provide updated medical information to the insurance company.
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