To reinstate a lapsed long-term care policy, what must the insurer prove regarding the policyowner?

To reinstate a lapsed long-term care policy, the insurer must prove that the policyowner was cognitively impaired. This requirement is significant because cognitive impairment can directly impact a person's ability to understand their policy or manage their finances effectively, potentially leading to missed payments and the policy lapsing. Long-term care insurance is designed to provide coverage for individuals who may need assistance due to such impairments.

In this context, demonstrating cognitive impairment is essential for reinstatement because it shows that the policyholder may not have been in a position to address the lapse effectively. It reflects the insurer's understanding of the challenges faced by individuals with cognitive issues and is a safeguard against penalizing them for circumstances beyond their control.

Reinstatement clauses often include provisions that protect those who have experienced significant health changes, ensuring that vulnerable populations still have access to their benefits when they need them most.