1. Restore a past-due loan to a current status. 2. To renew insurance coverage after a lapse. For example, if premiums are not paid in a timely fashion and a policy lapses, it may be reinstated within a specific period of time if the policy holder remains insurable. The option to reinstate coverage must be weighed against the potential advantages and disadvantages associated with a new policy. These might include changes in premium costs and the resetting of provisions for contestability and suicide.