What is the compound effect? What are the conditions for recovery?

Restoring the validity means that the invalid policy will have legal effect again. The conditions for the reinstatement of the policy are: the policy is invalid for no more than two years, the insurability certificate of the insured is submitted, and all unpaid premiums and interests are paid. If the insured goes out of danger during the observation period of policy reinstatement, the insured can't get any claims from the insurance company at all. After the policy is reinstated, it is generally a new observation period within half a year, and the insured cannot get compensation for serious illness during the insurance observation period. The applicant needs to pay off the premium and interest owed during the expiration of the policy in one lump sum, and calculate the compound interest on a daily basis.

In view of the invalidity of the insurance contract, the applicant can apply to the insurance company for reinstatement, and the invalid policy will take effect again after reaching an agreement with the insurance company. There is also a time limit for restoring the policy. Generally, the application is made within 2 years. After 2 years, the unrecovered policy will be completely "dead".

However, reinstatement also carries risks. The resumption of health insurance needs to be re-informed, which may lead to the increase of expenses, exemption or refusal of insurance due to poor health. In addition, the waiting period of policy reinstatement will be recalculated, and a certain late fee will be paid for reinstatement.

Policy reinstatement is a familiar business for policyholders, but any policyholder who forgets to pay the insurance premium can handle the policy reinstatement business within the specified time. Policy reinstatement means that during the two-year period when the insurance contract is suspended, the insured and the insurance company negotiate to resume the insurance contract and reach an agreement.

: 1. What are the conditions for not settling down after reinstatement?

1 If the insured goes out of danger during the observation period of policy reinstatement, the insured can't get any claims from the insurance company at all.

Generally, the new observation period is within half a year after the policy is reinstated, and the insured cannot get compensation for serious illness during the insurance observation period.

Simply put, if there is a waiting period after reinstatement, you may not be able to claim compensation, because if there is a waiting period after reinstatement, the insurance will take effect after the waiting period. Moreover, after the re-insurance of critical illness insurance, there was no claim during the observation period. In critical illness insurance, the reinstatement of the policy will affect the settlement result.

There will be some losses when the policy is reinstated, but it is basically cost-effective. For the insured who pays the premium for a long time, the remaining renewal period of his policy is not very long. If the insured does not resume the expired life insurance contract and wants to re-insure with the surrender money already obtained, it is certainly not cost-effective.