What Is A Reinstatement Clause In A Life Insurance Policy?
Reinstatement Clause A reinstatement clause is a clause written into an insurance policy that makes provisions for the restoration, or reinstatement, of a policy that has lapsed because of nonpayment of the premiums. The life insurance companies usually allow a grace period when they give the insured some time to catch upon payments. It can take up to three years for reinstatement to happen after there has been a lapse in the policy coverage. The insurance company may require the ...
