What does the reinstatement provision in a life insurance policy allow the policyholder to do?

The reinstatement provision in a life insurance policy is a valuable feature that allows a policyholder to reinstate a lapsed policy by demonstrating insurability. This means that if the policy has lapsed due to non-payment of premiums, the policyholder can restore their coverage by meeting specific conditions, such as providing evidence that they are still insurable, typically through a health assessment. This provision is crucial because it enables individuals who may have unintentionally let their policy lapse to regain their life insurance coverage without needing to start a new policy, which could involve higher premiums based on their current health status or age.

The other options, while relevant to some aspects of life insurance policies, do not pertain to the reinstatement provision. Changing the beneficiary, increasing the death benefit, or transferring the policy involves different procedures and provisions that do not relate to reinstating an expired or lapsed policy.