What is the primary advantage of obtaining a reinstatement of a policy rather than obtaining a new one?

The primary advantage of obtaining a reinstatement of a policy rather than purchasing a new one lies in the use of the insured's original issue age. When an individual reinstates their existing policy, they effectively retain the benefits and terms that were established based on their age at the time the policy was initially issued. This original issue age can be critical, especially for life insurance, as it determines the premium rates and coverage amounts.

If a new policy were to be issued, the insured would be assessed based on their current age, which could result in significantly higher premiums due to age-related risk factors. Thus, by reinstating a policy, the insured avoids the potential for increased costs associated with their current age and maintains their original policy terms.

While other factors such as premium amounts, coverage availability, and payment flexibility are important, they do not outweigh the fundamental benefit of retaining the original issue age, which can result in a more economically feasible and advantageous policy for the insured.