What action does Tom take to potentially reinstate his life assurance policy?

The action that Tom takes to potentially reinstate his life assurance policy is that the policy may be reinstated. Life assurance policies typically include provisions that allow policyholders to reinstate their coverage after it has lapsed, provided they meet certain requirements. These requirements often include paying any outstanding premiums and demonstrating insurability, which means that the policyholder must still qualify for coverage based on the insurer’s underwriting criteria.

Reinstatement is a beneficial option for the policyholder, as it allows for continuity of coverage without the need to undergo a new application process or face new underwriting decisions. This is particularly important for individuals who may have experienced changes in their health since the original policy was issued.

In contrast, taking out a new policy would represent starting over, claiming on the policy would imply using the policy benefits rather than reinstating it, and cancellation by the insurer typically indicates a termination of coverage rather than providing an opportunity to restore it.