How to Reinstate a Lapsed Life Insurance Policy

Short answer

A lapsed life insurance policy can usually be reinstated within a window the policy sets, often three to five years, by applying to the insurer, showing you are still insurable through a health questionnaire and sometimes an exam, and paying the missed premiums with interest. Reinstating is often cheaper than a new policy because it keeps your original issue age and rates.

Key takeaways

Most policies give you a grace period, usually 30 or 31 days, to pay a missed premium.
Many policies allow reinstatement for up to three to five years after a lapse.
Expect to pay past-due premiums, often with interest, and to answer health questions.
A lapsed whole life policy may still provide some coverage.
Reinstating keeps your original rates, which are often lower than a new policy's.

Grace period, lapse and reinstatement

When you miss a premium, your coverage does not end right away. Most policies give you a grace period, usually 30 or 31 days, to pay. Some universal life policies and some states allow longer. If the insured person dies during the grace period, the insurer generally pays the death benefit minus the premium owed.

If the grace period ends without payment, the policy lapses. For a term policy, that means coverage stops. Reinstatement is the process of asking the insurer to restore that same policy. If the insurer approves, your policy comes back with its original issue date and premium rates. That can be an advantage over buying a new policy at an older age.

Check your policy status first

Before you apply, call your insurer and ask exactly where your policy stands. You may have more coverage or more options than you think, especially with whole life or other permanent coverage. Some policies have built-in protections that kick in when a payment is missed. Ask about each of these possibilities.

You are still in the grace period and can simply pay what is due
An automatic premium loan paid the premium from your cash value
Your whole life policy switched to extended term insurance, which keeps coverage for a set time
Your policy became reduced paid-up insurance with a smaller death benefit
Your insurer will accept a late payment for a short time after the grace period ends

What reinstatement usually requires

Most life insurance policies include a reinstatement provision. Many let you apply for up to three to five years after a lapse, though some windows are shorter. You usually cannot reinstate a policy you surrendered for its cash value. The exact rules are in your policy contract, and they vary by insurer and by state.

The sooner you act, the easier reinstatement tends to be. Shortly after a lapse, an insurer may ask only a few health questions. After a longer gap, it may want medical records or an exam, and it can decline your request if your health has changed. Most insurers ask for some or all of the following.

A written reinstatement application
Proof of good health, such as answers to health questions, medical records or an exam
All past-due premiums, often with interest
Repayment of any policy loan, plus interest, or reinstatement of the loan

How to reinstate your policy

Each insurer has its own forms, but the process tends to follow the same pattern. Keep notes of every call, including the date and the name of the person you spoke with. Do not assume you are covered again until you receive written approval. These steps cover the usual process.

Call your insurer and confirm that reinstatement is still available for your policy.
Ask for the reinstatement application, the total amount due and the deadline to apply.
Complete the application and answer every health question fully and honestly.
Pay the past-due premiums, interest and any loan amount the insurer requires.
Wait for a written approval letter or an updated policy statement.
Set up automatic payments so the policy does not lapse again.

Reinstate or buy a new policy?

Reinstating keeps the rates you locked in at a younger age, and those are often lower than the rates for a new policy today. Your old policy may also be past its original contestability period. A reinstated policy can face a new contestability period, though in many states it applies only to answers on the reinstatement application.

A new policy may make more sense if the back premiums add up to a large sum, or if your term policy ends soon. It can also fit if your coverage needs have changed. Get the total reinstatement cost in writing and compare it with quotes for new coverage. An independent licensed agent can review your policy at no cost and help you compare.

Frequently asked questions

How long do I have to reinstate a lapsed life insurance policy?

It depends on your policy and your state. Many policies allow reinstatement for up to three to five years after a lapse, while others have shorter windows. The sooner you apply, the fewer requirements you are likely to face. Check the reinstatement section of your policy, or call your insurer to confirm your deadline.

Do I have to pay all the missed premiums to reinstate my policy?

Usually, yes. Most insurers require all past-due premiums, often with interest, before they restore coverage. If you had a policy loan, you may also need to repay it or reinstate it with interest. Ask your insurer for the full amount in writing so you can decide whether reinstating fits your budget.

Will I need a medical exam to reinstate my life insurance?

Maybe. Shortly after a lapse, many insurers ask only a few health questions. After a longer gap, they may request medical records or an exam. The insurer can turn down your request if your health has changed. Answer every question honestly, because wrong answers can give the insurer grounds to deny a claim later.

Can I reinstate a term policy that has expired?

Usually not. Reinstatement applies to a policy that lapsed because premiums went unpaid. When a term policy reaches its end date, it ends as planned. Many term policies can continue past the level premium period at much higher yearly rates, often up to a set age. If you still need coverage, you may need to apply for a new policy.

How can I keep my life insurance from lapsing again?

Set up automatic payments from your bank, and keep your mailing address and email current with your insurer. Many states let you name a backup person, such as an adult child, to receive a copy of any lapse notice. If you own universal life, check each annual statement to make sure the policy has enough funding.

Related guides

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