Health insurance is, over time, one of the most expensive services a person or family will ever pay for. Fortunately, the costs are often offset when a family member falls ill, and the monetary hardship brought on by a long hospital stay, ambulance ride or major surgery is in large part absorbed by the health care plan. Even with limitations, maximums and exclusions, most plans still manage to cover the important items, and can spare a family from bankruptcy as they try to save a loved one. But as much as every family and every person does their best to ensure that their health insurance premiums are paid on time, every time, it will almost inevitably happen that a payment will be late or forgotten. This can mean a lapse in insurance coverage, which can in turn make it difficult to get a new health insurance quote. In situations where there is a cognitive impairment present, however, in addition to a reinstatement provision, this can be largely mitigated.

Once a payment has been missed, an insurance company does have the right to terminate coverage, leaving an individual stranded should they suddenly need major surgery or urgent care. However, plans in most states are required to carry a reinstatement provision which lists under what conditions insurance coverage can be resumed at the same premium rates. Typically, this involves a payment after the fact, sometimes with interest, that is accepted by the insurance company. Although the policy must be reinstated in these cases, the company is allowed to add waiting periods or alter some benefits due to the fact that the policy lapsed, often making it less useful.

If, however, an insurance policy holder can demonstrate a level of cognitive impairment, for example high stress or reduced functioning due to an injury and this can be confirmed by a doctor, it is possible to have the policy reinstated as it was without any change to its benefits or waiting period. Although this policy in regards to cognitive impairment is not mandated, many companies understand that during a stressful event such as an injury car accident or sudden illness, forgetting to pay an insurance bill can occur. Once the non-payment stretches over even a grace period, however, most companies will require medical documentation if a client hopes to have their original policy continued as it was.

Reinstating a policy is always preferable to having it permanently canceled, as this can seriously affect a person's ability to find a reasonable health insurance quote. If a missed payment occurs, look into the reinstatement provision. If there is a serious medical reason for the lack of payment, a cognitive impairment diagnosis may be necessary.