Monday, December 28, 2015

Reinstatement/Revival

Reinstatement is the process by which a life insurance company puts back into force a policy that has either been terminated because of non payment of premiums or has been continued under one of the non forfeiture provisions

 Conditions of Policy Revival:

  • Payment of outstanding premium with interest
  • Fee for reinstatement
  • Proof of continued good health & income
  • No increase in Risk cover
  • Within time frame - in India within 5 years from the date of Lapse
  • Payment of outstanding loan
  • Fresh medical examination may be required if SA is large
Revival is more often advantageous because buying a new policy would call for a higher premium based on age on the date of revival

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