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Reinstatement

Once the policy has lapsed the life office is off risk.   There is a possibility that the policyholder may then contact the life office to ask that the policy be reinstated. The option to reinstate is totally up to the life office.

If the life office does agree to reinstate the policy they may require the policyholder to pay all premium arrears, settle any late premium charge and to sign a declaration of good health. That declaration would form part of the contract with the life office and be subject to the usual disclosure of material facts.

If a long period has passed the life office may not be willing to reinstate the policy and the policyholder may have to apply to the life office for a new policy and complete a new proposal form and pay a rate applicable to their current age.

Alterations

Sometimes the policyholder may request that an alteration be made to the policy. Policies runs for long periods of time and these requests do occur. The life office will often maintain a separate department to handle these requests. As the policy is a contract any alteration can only be achieved by mutual agreement.

The most common alteration requests are as follows, The life office will require the policyholder’s written instructions to make the change and may require the agreement of any other party who has an interest in the policy.   If the alteration is agreed the life office will issue an endorsement to the policy and mark up their records accordingly.
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