Montana State Life Insurance Practice Exam 2026 - Free Life Insurance Practice Questions and Study Guide

Question: 1 / 400

What is the reinstatement period for a life insurance policy, excluding industrial life policies?

1 year

2 years

3 years

The reinstatement period for a life insurance policy, excluding industrial life policies, is typically set at three years. This timeframe allows policyholders to reinstate their lapsed policies without having to purchase a new one, provided they meet certain criteria, such as paying the overdue premiums and confirming their insurability. This three-year reinstatement period is a common standard in the life insurance industry, reflecting a balance between providing policyholders with adequate time to reinstate their coverage while also protecting the insurer's interests by avoiding extended periods of non-coverage. Understanding this reinstatement period is crucial for policyholders, as it can significantly impact their ability to maintain continuous coverage and benefits.

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5 years

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