There are several factors that go into reinstating a life insurance policy, including how long the policy hasn't been paid for and the insured's current health status. After a policy goes unpaid, the insurance company will send the customer a letter notifying him/her of a grace period to keep the policy intact. The customer will have to make full payments of all past and current premiums due before that date to keep the policy effective. After that date, the policy is terminated. If you have reached that point, then the process is more complicated but it is still possible. The customer will then need to call his or her agent or the company directly to begin the process of applying for re-instatement. There is usually a designated time frame during which the customer can re-apply, but that will be different depending on the customer. That process is similar to the process when the insured originally applied for the policy, meaning that the customer will need to send in all copies of medical exams, tests, lab work and anything else that they might need to provide evidence of insurability. If the underwriter then approves re-instatement, the customer will be asked to pay all back premiums and interest from when the policy initially lapsed in order for the policy to be fully reinstated. The customer is not covered until that full reinstatement occurs. In the recent case of Wactor v. Jackson National Life Ins. Co in 2013, a court ruled the same. The policy lapsed in January, the insured's wife and sole benefactor inquired about the policy in June and was told it was lapsed and, since she did not have power of attorney, only the formerly insured could apply for reinstatement. The formerly insured died before that could occur and his wife's suit against Jackson National Life alleging unjust enrichment, breach of contract, bad faith, equitable estoppel and breach of the duty of good faith and fair dealing were all rejected by the South Carolina federal district court.
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