Reinstatement is the re-approval and re-activation of your life insurance policy after a lapse. Before reinstatement you ill be asked to complete a new application and you will have to go through underwriting approval. Additionally, you will be expected to pay the premiums that have been unpaid.
Life insurance can be purchased to provide a means of payment for burial expenses. It can also be purched to pay for burial expenses and your familys debt. Additionally, life insurance can be purchased so the proceeds are enough to set up college or trust funds for your children and family.
You took your time when deciding what neighborhood to live in. You checked crime statistics, school zones and school performance, and you made sure there were all manner of modern conveniences nearby. Without a life insurance policy to ensure that your family can remain in the home you carefully selected, your family may be forced to move and unable to afford to be choosey about where they go.
Life insurance premiums can be paid quarterly, annually, semi-annually or monthly. Generally, it is best to pay the premium annually in order to avoid additional processing fees. Should you miss a payment, you policy may lapse which could result in your coverage being permanently revoked.
|Jennifer Mathes, Ph.D.|