Reinstating your life insurance policy

Reinstating your life insurance policy

Sometimes our policies lapse and one of the valid reasons for a policy lapse could be non-payment of premium. However there is a reinstatement provision which enables the policyowner to reinstate a lapsed policy and bring it back to force. The reinstatement period (the period during which the policy can be reinstated) must continue for at least 2 years after the grace period expires. To reinstate the policy, the policyowner must pay all past premiums plus interest and may even be required to provide evidence of insurability.

Reinstatement will also reset the suicide and contestability periods.

Why to bother to reinstate when you could purchase a brand new policy?

It might appear that it would be just as easy to apply for a new policy instead of reinstating an old one.

The main reason is that the premiums on the reinstated policy will be based on the insurance age of the life insurance when the original policy was first issued. Premiums on the new policy will be based on the current age of the life insured. The decision, henceforth, could be dependent on the policyowner’s affordability to either pay the increased premiums of the new policy or pay the past premiums.

We at are experts in explaining the the various types of life insurance that could protect the entire family. Please feel free to contact us at or at 1 416 509 2540. Please visit us for a no obligation quote or advice.

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