What is the process of reactivating a lapsed life insurance policy known as?

The process of reactivating a lapsed life insurance policy is known as reinstatement. When a policyholder fails to pay their premiums and the policy lapses, they may have the opportunity to reinstate the policy within a certain timeframe. This process typically involves the policyholder providing evidence of insurability, which may include a health questionnaire or medical exam, and paying any outstanding premiums or fees.

Reinstatement is important for policyholders because it allows them to regain the coverage that they had previously, ensuring that their insurance protection remains in place. This process is often governed by the terms outlined in the original policy contract, which specifies the conditions that must be met for reinstatement.

Renewal generally refers to the continuation of an existing policy by paying the renewal premium but does not apply to policies that have lapsed. Restoration and activation are not standard terms used in the context of life insurance policy lapses and reactivations, making reinstatement the clear and appropriate term in this scenario.