A client, Mr. Singh, age 65, has a Term-20 policy that reaches its expiry date. He failed to renew it and the policy lapsed. Three months later, he realized he still needed coverage for his family. What are the conditions under which Mr. Singh might be able to reinstate his lapsed policy, according to standard policy provisions?

Question: A client, Mr. Singh, age 65, has a Term-20 policy that reaches its expiry date. He failed to renew it and the policy lapsed. Three months later, he realized he still needed coverage for his family. What are the conditions under which Mr. Singh might be able to reinstate his lapsed policy, according to standard policy provisions?

Answer options: ✅ He must submit a new application, provide satisfactory evidence of insurability, and pay all overdue premiums plus interest, usually within a specified reinstatement period (e.g., 2-3 years).

• He can reinstate the policy automatically by simply paying the missed premiums and interest, without any medical assessment.
• Reinstatement is generally not an option for term policies once they have lapsed; a new policy must be purchased.
• He can only reinstate if the policy had accumulated a cash value, which is not typical for term insurance.

Correct answer: He must submit a new application, provide satisfactory evidence of insurability, and pay all overdue premiums plus interest, usually within a specified reinstatement period (e.g., 2-3 years).

Explanation: To reinstate a lapsed policy, the insured typically must provide evidence of insurability and pay all overdue premiums with interest, usually within a specified timeframe (e.g., two to three years from lapse date), as per common reinstatement provisions outlined in insurance contracts.