The policy lapsed because a premium was missed – and now you need the cover back. The good news: for many products, reinstatement exists, meaning the lapsed policy can be restored under the policy terms. The less good news: it isn't automatic, it isn't possible indefinitely, and it comes with conditions. Here's the realistic picture.
- The law itself provides for reinstatement: for a policy that lapsed due to non-payment of a subsequent premium (any premium after the first), the policyholder may request in writing, within 120 days of the lapse, that risk cover be reinstated, and, under the Hungarian Civil Code (Ptk.) Section 6:449, the insurer may – provided the outstanding premium is paid – reinstate the cover on the terms of the lapsed policy; for consumer contracts, the product's own terms can only be more favorable than this – the exact procedure is set out in the policy terms.
- Typical conditions: paying the missed premiums, plus a new health declaration or underwriting review.
- If the reinstatement window has closed, taking out a new policy is what remains – with today's age and today's underwriting.
How does reinstatement work?
After the policy lapses, you can request reinstatement within the time window set out in the policy terms. The insurer typically requires the missed premiums to be paid, and – since cover was interrupted – may require a new health declaration or underwriting review. If your health has changed in the meantime, it must be disclosed accurately here too – the same rules apply as when the policy was first taken out.
Why is it typically better value than taking out a new policy?
Because a reinstated policy continues with its original parameters: the premium level from when you first took it out, and waiting periods that have already run their course. A new policy, by contrast, starts with today's age – a higher premium, waiting periods starting over from zero, and fresh underwriting. The difference is noticeable even year to year, and can be significant over the full term.
The process – step by step
- Check the reinstatement deadline in the policy terms – the clock started running when the policy lapsed; if you have any questions, I can help.
- Submit a request to the insurer – together with how you plan to settle the missed premiums.
- A new declaration or underwriting review, if the insurer asks for one – our preparation guide is useful here too.
- Keep the confirmation: the date cover comes back into force is the key date.
If reinstatement is no longer an option
In that case, taking out a new policy is what's left – done sensibly: with a review of your situation, sized to today's needs, drawing on offers from several insurers. And let's build in the lesson: a more conservative premium, automatic payment, premium waiver – so the story doesn't repeat itself: the tools of prevention.
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