What does reinstatement allow a lapsed policy owner to do?

• A. Restore a lapsed policy by paying back overdue premiums with interest, providing evidence of insurability, and meeting requirements within a specified period
• B. Cancel policy and receive surrender value
• C. Transfer ownership to another person
• D. Convert to term policy automatically

Answer: (A)

Reinstatement lets a lapsed policy be put back in force after nonpayment. To do this, you typically must pay the overdue premiums plus interest, provide evidence of insurability (to show your risk hasn’t worsened), and meet any other policy requirements within a specified reinstatement period. If approved, the policy is restored as if it never lapsed, usually with the original coverage and terms, though premiums may be recalculated based on your current age and underwriting at reinstatement. This isn’t about canceling for a surrender value, transferring ownership, or automatically converting to term. Those are separate actions with different effects.