Which provision allows policyholders to reinstate a lapsed policy under certain conditions?

The reinstatement provision specifically allows policyholders to reinstate a lapsed insurance policy within a specified time after the policy has lapsed, provided certain conditions are met. These conditions often include the payment of overdue premiums and proof of insurability, which means demonstrating that the insured's health status has not changed significantly since the policy was initially issued. This provision is crucial for policyholders who may have missed premium payments but wish to go back to having coverage, thus preventing the policyholder from losing all benefits associated with the policy.

The grace period provision refers to the time allowed for a policyholder to make a premium payment without losing coverage but does not actually reinstate a lapsed policy. The accelerated benefits provision allows policyholders to access certain benefits prior to death, under specific circumstances, such as terminal illness, and does not pertain to reinstatement of a lapsed policy. The incontestable clause is a provision that prevents an insurer from contesting the validity of a policy after a specified period, typically two years, which means it does not address lapses due to nonpayment. Therefore, the reinstatement provision is the only option that directly pertains to the act of restoring a lapsed policy.