What is a situation in which a life insurance policy cannot be reinstated?

A life insurance policy cannot be reinstated if it has been surrendered for cash value. When a policy is surrendered, the insurance company terminates the contract, and the policyholder receives a cash amount equivalent to the policy's accumulated value minus any applicable surrender charges. This process effectively cancels the insurance coverage and means that the policy is no longer active. Once a policy is surrendered, it cannot be reinstated, regardless of the premium payment history or other circumstances.

In contrast, a policy that has lapsed for non-payment can often be reinstated if the policyholder pays the back premiums and meets any other requirements set by the insurer within a certain timeframe. Moving out of state doesn't affect the validity of a policy; rather, most policies remain in force regardless of the policyholder's location. Turning 65 does not inherently result in a policy's termination or reinstatement issues unless specific terms in the policy dictate otherwise, such as a conversion option in the case of a term policy.