What is the main advantage of reinstating a life insurance policy instead of applying for a new one?

The primary advantage of reinstating a life insurance policy lies in the fact that the original age of the insured is used to determine premiums. When an individual reinstates their existing policy, they benefit from being assessed at the age they were when they first took out the policy, rather than their current age. This is significant because life insurance premiums generally increase with age due to the higher risk associated with older individuals.

Reinstatement allows the insured to retain potentially lower premiums that they secured at a younger age, making their coverage more affordable compared to applying for a new policy where the premium would be calculated based on their current, older age.

While immediate coverage and terms access might be attractive features, these considerations do not overshadow the fundamental benefit of premium determination based on the original age, which can substantially affect the cost of maintaining life insurance coverage over time.