Can a fully surrendered policy be reinstated?

Submitted by RAJEEV on Tue, 09/04/2007 - 10:57

Can any fully surrendered policy get reinstated? if yes what are the conditions.

Posted: 04 Sep 2007 08:47 Post Subject:

Hi rajeev,

I am assuming that you are referring to a cash value life insuance policy that has been surrendered for that cash value. If that's correct, here's some information for you.

Normally, a cash value life insurance policy is surrendered for it's cash at either the request of the policyowner, or if the policy has gone into non-forfeiture because the policy lapsed due to non-payment of premium. In either case, the effect would be the same.

If a policy has been surrendered for the cash, it cannot normally be reinstated. When you surrender, you "quit" the policy. You "gave it up" and since nothing actually exists anymore (since you "quit") there wouldn't be any policy remaining TO reinstate. It's over, it's done, it's toast.

While I could be wrong, I don't know of any carriers that will allow reinstatement of a surrendered policy. Whoever surrendered the contract will have to reapply for a new policy and go through the standard underwriting procedures.

I hope this helps, and if there is anymore information that you could provide regarding this situation, it may give us something additional we could help you with.

Good luck!

InsTeacher 8)

Posted: 05 Sep 2007 07:06 Post Subject:

Hello rajeev,

In case of life insurance policies; the policy can be reinstated depending upon the guidelines suggested by the insurance firm. For reinstating the policy the insured is required to make an application and undergo medical tests to confirm good health. The insurance company will then decide whether to reinstate his/her policy or not. The policy holder also should promise to pay all the lost premiums in order to put his policy in force. As InsTeacher has rightly mentioned, the insurance company may decide not to reinstate your policy as they have already paid off the cash value on your policy. Well some may also decide otherwise. To get a proper picture you need to ask your insurance agent. SSundar

Posted: 05 Sep 2007 07:29 Post Subject:

Your fully surrendered policy may get reinstated except the following circumstances:


  • 1. If the insurance company has to reinstate the full amount of the surrendered policy.
    2. Where the date of reinstatement of the policy is the date of surrender of the parent policy.


Regards,
Martha

Posted: 05 Sep 2007 03:50 Post Subject:

Welcome to the Community Rajeev :D Also, if you can give us an example of what circumstances you are talking about, it would help to be able to give you answers for your problem..Good Luck, Feel free to ask questions..KAren

Posted: 15 Nov 2007 04:55 Post Subject: Post shifted......

Hi hannah, Your post has been shifted to the following URL.

http://www.ampminsure.org/manage/about3401.html

Thanks,
Lakemen

Posted: 22 Jan 2015 09:10 Post Subject: way too much insurance

Recently I went through all my insurance policies and realized I had 6 Life insurance policies, some from the same company. Originally I started buying insurance at the age of 40 and updated (increased) policies in my 50's. Financial it's getting out of hand paying over $170/month. Now that my children are adults, do I really need so much insurance?

Posted: 26 Jan 2015 01:46 Post Subject:

How much is "so much"? All you've said is you cannot afford $170 per month. If you have no need for life insurance, you can terminate all of it. You probably need to discuss this in person with a live life insurance agent or analyst.

Posted: 11 Dec 2015 02:52 Post Subject: Life Ins Company surrenderd wrong policy

I sent a fax asking the Company to surrender my Grand-son life Insurance. I gave them the policy #. They surrender the wrong Life Insurance that had a loan. The letter say's: (Your coverage has been surrendered and is value effective the date shown above. This check represents your full surrender value which is the cash value minus any outstanding loans). They said, they could reinstate the policy if I repay the check and the loan that was on it. Why should I pay a loan when it has been paid ? :(

Posted: 20 Dec 2015 07:54 Post Subject:

You cannot have it both ways. If there was an outstanding loan, you must reinstate the loan in order to reinstate the policy. The insurance company is being very generous in allowing you to do that. They could just as simply say, "Thanks for your business, now go away."

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