If your Term life insurance policy lapses, you have a one month "grace period" to pay the missed premium and keep your policy in force. If you missed paying two months' premiums, you might reinstate your policy by filling out paperwork and catching up the premiums. This does not require taking a new exam, but the insurance company may order medical records to determine if you are still medically eligible to get your policy back at the original health rating.
The same applies to Whole Life, but with Whole Life you may still have the option to take out the cash value of the policy or turn your policy into a reduced paid up policy.
Life Insurance lapses are caused by not paying the premium. When this happens you no longer have coverage. Before a policy lapses, it falls into a grace period which is an opportunity to catch up on payments.
When a policy lapses you may be able to reinstate the policy however this is not guaranteed.
That is a great question! Generally what happens is that if it can be addressed relatively quickly, the agent can request a reinstatement form. The applicant and the agent then fill out the application, and resubmit for coverage. That is the good news. The bad news is that the client will need to submit the premium that is back owed, plus generally two months in advance. That can be pretty pricey. The reinstatement process can take anywhere from 30-60 days. Thanks for asking!
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The same applies to Whole Life, but with Whole Life you may still have the option to take out the cash value of the policy or turn your policy into a reduced paid up policy.
When a policy lapses you may be able to reinstate the policy however this is not guaranteed.