Reinstatement

Reinstatement provides Australian policyholders with a second chance to restore coverage after policy lapse due to non-payment. The reinstatement period and requirements vary by insurer and policy type, but Australian regulations generally allow reinstatement within 30 days of lapse with simple premium back-payment, and within 90 days with premium payment plus evidence of insurability. This process protects consumers who experience temporary financial difficulties or administrative errors from losing valuable coverage permanently. During the initial 30-day reinstatement window, you typically only need to pay all outstanding premiums plus any late fees (often 10% of overdue premiums). The policy reinstates as if it never lapsed, maintaining original underwriting terms, conditions, and premium rates. Between 31-90 days, insurers usually require completed health questionnaires to verify that your health status hasn't materially changed. If health has deteriorated, the insurer may offer reinstatement with new exclusions or decline reinstatement entirely, requiring full reapplication. After 90 days, most Australian policies require complete reapplication with full underwriting, medical examinations, and current age-based premium calculations. The reinstated policy is treated as new, with fresh waiting periods for pre-existing conditions. Some policies offer extended reinstatement rights beyond 90 days for specific circumstances like financial hardship or administrative errors. Australian consumer protection laws require insurers to clearly communicate reinstatement rights, procedures, and timeframes in lapse notices. Strategic consideration of reinstatement is crucial - if health has deteriorated, reinstating quickly within the 30-day window preserves invaluable coverage at original terms.