What is the primary purpose of the reinstatement provision?

• A. To increase the premium
• B. To extend the term of the policy
• C. To put a policy back in force as if it had never lapsed
• D. To cancel the policy

Answer: (C)

Reinstatement is about reviving a policy that has lapsed due to nonpayment and restoring it to active status under its original terms. Within a set period, the insurer allows the policy to be reinstated if you provide evidence of insurability, pay all overdue premiums with interest, and settle any outstanding policy loans or charges. Once reinstated, the policy operates as if it had never lapsed, preserving the original face amount and benefits. It’s not about increasing the premium, extending the term, or canceling the policy.