Definition: If an insured person fails to lớn pay the premium due to various circumstances and as a result the insurance policy gets terminated, then the insurance coverage can be renewed. This process of putting the insurance policy back after a lapse is known as reinstatement.Description: Before reinstatement various factors are taken into account. Pros and cons of renewing the policy are considered. The insured person might have to compensate for the failure to pay the premium.Also See: Life Annuity, Paid-up policy

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