Reinstatement Provision

Updated: 29 February 2024

What Does Reinstatement Provision Mean?

A reinstatement provision in a life or property insurance policy is a clause that grants the policyholder a limited period of time to reinstate their policy after it has lapsed. To reinstate the policy, they will need to provide evidence of insurability, along with back premiums and interest.

Insuranceopedia Explains Reinstatement Provision

Policies can lapse for a number of reasons, including a failure to pay premiums. Unless there is a reinstatement provision in place, this lapse results in the termination of the policy, and the policyholder must re-apply for the policy if they wish to resume coverage. In doing so, however, they may face higher premiums or less favorable policy terms.

Under a reinstatement provision, an insurance policy can be restored to its full original coverage and under the same conditions. The insurance company, however, has a right to attach a rider to the policy to limit the coverage based on an updated health history.

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