What is the time frame in which a policyowner can reinstate a lapsed life insurance policy?

The correct time frame for reinstating a lapsed life insurance policy is typically three years. This period allows policyowners to restore their coverage after a lapse without having to reapply for a new policy. During this three-year window, individuals usually need to provide evidence of insurability and may be required to pay any back premiums that accrued during the period of lapse.

The three-year guideline is important as it strikes a balance between giving policyholders a reasonable amount of time to address their lapsed policies while also protecting the insurance company against prolonged risk without a renewal or premium payment. After this period, the policy would generally be viewed as expired, and the policyowner would need to go through the underwriting process by applying for new coverage altogether.