Reinstatement

Reinstatement is the process of restoring a lapsed policy to active status. Australian regulations generally allow reinstatement within 30 days of lapse with simple back-payment, and within 90 days with back-payment plus evidence of continued insurability.

Reinstatement windows compared

| Window after lapse | Requirements | Result | |---|---|---| | Within 30 days | Outstanding premiums plus late fee (often 10%) | Policy reinstates as if never lapsed; original terms preserved | | 31 to 90 days | Outstanding premiums plus health questionnaire | Reinstated, possibly with new exclusions if health has changed | | After 90 days | Full reapplication and underwriting | Treated as a new policy at current age-based premiums |

What 'reinstated as if never lapsed' means

Within the 30-day window:

• Original underwriting terms preserved.
• Original premium rates preserved (subject to scheduled indexation).
• No new waiting periods on existing conditions.
• Guaranteed insurability options maintained.

This is the most valuable reinstatement window, especially if your health has changed since the policy started.

Why the 90-day cliff matters

After 90 days, the lapsed policy is generally not recoverable. You must apply for a new policy with:

• Full medical underwriting at current age.
• Current age-based premium rates.
• Fresh waiting periods for pre-existing conditions.
• No guarantee of acceptance if health has deteriorated.

Special cases

Some policies offer extended reinstatement rights beyond 90 days for:

• Documented financial hardship.
• Administrative errors (failed direct debits, lost notices).
• Hospitalisation that prevented timely payment.

Australian consumer protection law requires insurers to communicate reinstatement rights, procedures, and timeframes clearly in lapse notices. If your health has deteriorated, acting inside the 30-day window preserves invaluable cover at original terms.