01.Core Concepts

The reinstatement provision permits the owner to reinstate a lapsed policy To reinstate a lapsed policy, the following requirements must be met: Evidence of insurability is required All overdue premiums plus interest are paid Any policy loans are repaid or reinstated The policy was not surrendered for its cash value The policy must be reinstated within a certain period Although it may require a large outlay of cash, it may be cheaper to reinstate a lapsed policy than to purchase a new policy ‹#›