Reinstatement after lapse of a life insurance policy requires which condition?

• A. Reinstatement is impossible.
• B. Proof of insurability.
• C. Automatic reinstatement after a fixed period.
• D. No evidence required.

Answer: (B)

Proof of insurability is required to reinstate a lapsed life policy. When a policy lapses, the insurer typically allows restoration if you apply within a set reinstatement period, pay any overdue premiums with interest, and demonstrate your current health status. The insurer uses proof of insurability to reassess risk and determine whether to reinstate the coverage and at what rates or terms, often involving medical underwriting, a health questionnaire, or even a medical exam. If these conditions are met, the policy can be reinstated under terms similar to those before the lapse, though some provisions or riders might be adjusted. Automatic reinstatement does not usually occur, and eschewing evidence of insurability isn’t correct because underwriting helps protect the insurer and—by extension—the policy owner—from adverse changes in health.