A life insurance policy may typically be reinstated within 30 days of a lapse without additional paperwork, underwriting, or attestations of health. Insureds often pay a reinstatement premium, which is larger than the original premium.

Is reinstatement a required provision in life insurance?

Most insurers will require the following when reinstating a lapsed policy. All past due premiums, plus interest if applicable, must be paid. Any outstanding loans on the lapsed policy may be required to be paid back. Evidence of insurability may be required.

What does it mean when your life insurance lapse?

What Happens When Life Insurance Lapses. Once a policy has lapsed, you no longer have coverage. That means the insurer does not have to pay a death benefit to your beneficiaries if you die. But you may be able to reinstate a lapsed policy, depending on how long ago it lapsed.

Can a life insurance policy be reinstated after a lapse?

In most cases, yes a life insurance policy can be reinstated for a short period of time. These times vary by carrier. Most will range from 60 days to 180 days or 6 months without proof of insurability. You will have to catch up the back premiums for the lapse period which sometimes can be a bit expensive depending on your original premiums.

When does a life insurance policy come back into force?

Reinstatement only happens after the grace period has ended, and the life insurance contract is no longer in force. The ability to reinstate a policy is not guaranteed by law, so the availability of this feature may differ between life insurance providers.

What are the benefits of reinstating a life insurance policy?

Benefits of Reinstatement The benefit of reinstating an existing policy rather than applying for a new policy is that you’ll likely pay less. If your health hasn’t changed, your insurer will honor the original pricing on your policy, Ardleigh says. If your health has changed, that could affect your rate (or your insurability).

Is there grace period for Kotak Life Insurance?

The grace period in the case of quarterly, half-yearly, and yearly premium payment modes is 30 days. This period is 15 days in case of monthly payments. You can pay the premium and revive your policy within this period. If you fail to do the needful, the policy will lapse and you will not have any life cover.