Which of the following is essential for reinstating a lapsed insurance policy?

Reinstating a lapsed insurance policy typically requires several key components to ensure that the policyholder can regain their coverage.

First, a new application form may be necessary because the initial application that was submitted when the policy was first taken out may not reflect the current circumstances of the insured. This allows the insurer to reassess the risk and ensure that the policyholder still qualifies for coverage.

Proof of good health is also essential because if a policy lapses, the insurer generally wants to confirm that the individual has not developed any serious health conditions that would affect their insurability. This requirement helps manage the insurer's risk by ensuring that the individual still meets the underwriting criteria.

Lastly, complete payment of back premiums is crucial. This payment resolves the outstanding dues that led to the lapse in the first place, ensuring that the policy can be restored to its original terms. Without settling these premiums, the insurer cannot reinstate the policy.

Therefore, all of these elements must be fulfilled for an insurance policy to be reinstated, underscoring the importance of a comprehensive approach to reinstatement that addresses application, health status, and financial obligations.