In reinstating a lapsed policy, what must the insure provide?

When reinstating a lapsed life insurance policy, the insurer typically requires proof of insurability. This is essential because the insurer needs to evaluate the current health status of the policyholder to determine whether they are still eligible for coverage at the original premium rates. When a policy lapses, the insured's health may have changed since the time of initial underwriting, and this could impact the risk assessment.

By requiring proof of insurability, the insurer ensures that it is making an informed decision regarding the reinstatement. This evidence often comes in the form of a medical exam or a health questionnaire. It is critical for maintaining the integrity of the insurance process, as it helps protect the insurer from adverse selection, where individuals with higher risk are more likely to seek reinstatement.

In this context, proof of income or proof of residency is generally not required for reinstatement, as the insurer is primarily concerned with the policyholder's health status rather than their financial situation or place of residence. Therefore, the requirement for proof of insurability is a key factor in the reinstatement process.