Which provision allows a lapsed policy to be put back in force?

The reinstatement provision is a key feature in life insurance policies that enables a lapsed policy to be restored to active status. When a policyholder fails to pay their premium and the policy lapses, this provision allows them to reinstate the policy after a certain period, typically by meeting specific requirements. These requirements often include the payment of overdue premiums, interest, and possibly providing evidence of insurability, which may require a medical exam or other documentation. By reinstating the policy, the policyholder can regain coverage as though the policy had never lapsed.

In contrast, while the grace period provision provides policyholders with additional time to make premium payments before the policy lapses, it does not offer a mechanism for reactivating a policy that has already lapsed. The renewal clause typically pertains to policies that offer annual renewal options rather than reinstatement of lapsed coverage. Likewise, the restoration option is not a standard term typically associated with life insurance policies in restoring lapsed coverage, which further emphasizes the importance of recognizing the reinstatement provision for reactivating a policy.