Prepare cash and timing for a lapsed Korean insurance policy
After receiving a lapse notice, it is easy to focus only on the missed premiums.
A reinstatement application also requires a complete installment ledger, contract interest, the applicable application period and an accurate surrender refund status.
This worksheet helps a policyholder or family member organize the figures and questions for one policy before contacting the insurer.
The calculation uses the Korean framework verified in 2026 and keeps every monetary input in KRW.
Keeping versus surrendering a valid policy is a different decision; this page focuses on preparing an application for an already lapsed policy.
It predicts neither future surrender values nor replacement product prices, and being within the displayed period does not approve restoration.
Start with the termination notice, issued policy wording and current arrears record.
Three distinct cash figures
Reinstatement cash
Outstanding premiums through the planned application plus the interest entered or estimated.
Use it to reconcile a payment quote; future regular premiums are excluded.
Full-gap reserve
Your daily and one-off cash assumptions for all days from lapse until coverage restart.
This is neither an insurance benefit nor a disease-risk estimate.
Combined budget and shortfall
The sum of both figures compared with the cash you allocate.
A separate reinstatement-only shortfall helps distinguish the payment from the wider household reserve.
Unknown interest withholds the reinstatement total rather than silently treating it as zero.
An unknown restart date withholds the full-gap reserve and combined budget while preserving the principal and gap through application.
A confirmed zero amount remains a valid input and is different from missing information in both the results and the saved worksheet.
Inputs to reconcile with the notice and policy
Lapse, application and evidence dates
Use the lapse date shown by the insurer, not automatically the first missed due date or reminder date.
The planned application date anchors the premium ledger and interest estimate.
The evidence date records when you checked the supplied information; it does not validate the documents by itself.
Unpaid installments
Enter each due date and the balance still outstanding.
For a partly paid installment, enter the remaining amount rather than the original premium again.
Reconcile additional installments becoming due through application, waivers and corrections against the insurer ledger.
Up to 120 installments are supported; dates must be real calendar dates in 1900–2100 and cannot be later than application.
Surrender refund status
Select not received, received or unknown.
The standard terms also address cases with no surrender refund and refunds reduced by policy loans but not actually received.
Do not equate a bookkeeping loan offset with receiving a payment.
An actual refund receipt requires a separate check of ordinary reinstatement conditions.
Policy and procedure scope
This worksheet concerns ordinary premium-arrears reinstatement for life and disease/injury insurance.
Auto insurance, postal insurance and special restoration following compulsory execution have separate rules.
Choosing other or special procedure preserves a monetary scenario and displays a scope warning; it does not apply the ordinary conditions to that policy.
36 months is a reference; verify the actual deadline
Commercial Act Article 650-2 provides for reinstatement requests involving overdue premiums and agreed interest after qualifying termination without payment of a surrender refund.
Life standard terms Article 27 and disease/injury standard terms Article 29 provide the general three-year reference after termination.
The statute itself does not make three years a universal filing period for every insurance product.
Use the wording issued for your policy and the actual reason for termination.
Calendar period or confirmed date
Period mode adds the entered policy months to the lapse date.
If the corresponding day does not exist in the target month, it uses that month’s final day, so verify leap-day and month-end results.
Use an insurer-confirmed deadline directly when available, or select unknown instead of forcing a date.
The period input supports 1–120 months; its initial 36 months remains an unconfirmed reference until you mark the issued terms checked.
The screen distinguishes a planned application before, on or after the displayed deadline.
It does not adjust holidays, branch hours, online receipt cutoffs or special legal time-computation issues.
A same-day result is a prompt to confirm actual receipt arrangements immediately.
A reference date or a date you mark as confirmed still does not determine underwriting acceptance.
Interest formulas and confirmed total interest
Simple estimate
Installment interest = round(balance × annual rate/100 × elapsed days / 365 or 366)
Elapsed days are the calendar difference corresponding to the day after the due date through application.
An installment due on the application date has zero elapsed days and zero estimated interest.
Annual-compound estimate
Installment interest = round(balance × ((1+annual rate/100)^(elapsed days/denominator) − 1))
This converts an annual growth factor into a fractional-year estimate.
Each installment is rounded to whole KRW before summation.
The 365- or 366-day denominator is an explicit assumption, not an automatic leap-year rule.
The insurer may use different accrual dates, compounding periods or rounding, so neither estimate guarantees the bill.
When you obtain a total-interest quote for the same application date and ledger, select insurer-confirmed total interest.
That amount is used directly and is not arbitrarily allocated across the installment rows.
The standard terms’ reference to an average published rate plus 1% is not a confirmed customer-specific interest rate to copy into the field.
Floating-rate products can use a separate rate specified in their business-method documentation.
Confirm the actual contract rate rather than substituting a deposit or market rate.
The annual-rate input supports 0–100%, but this technical range does not imply any rate is typical or legally applicable.
Keep application and coverage restart separate
The application date is a cash and filing planning date; the restart date concerns actual cover.
The calculator does not automatically reuse application as restart.
Leave restart unknown until you have information, or choose an assumed date only to examine a budget scenario.
Even a date marked insurer confirmed does not establish payment of a particular claim or the end of every rider exclusion.
Gap and reserve formulas
Gap through application = application date − lapse date
Full gap = restart date − lapse date
Additional gap = restart date − application date
Full-gap reserve = full gap days × daily reserve + one-off reserve
The date interval includes lapse and excludes restart.
It is not a determination of the precise hour when legal coverage ends or begins.
A restart date must be on or after application.
Daily reserves may represent care, transport or cash flexibility you choose to budget during the gap.
The one-off reserve covers a separate budget item; do not include the same expense in both fields.
Because the full interval includes already elapsed days, distinguish past spending from money still to be raised when interpreting the result.
No medical risk, expected loss or insurance payout is inferred from these assumptions.
Step-by-step use and unknown states
- Collect the termination notice and ledger, then enter lapse, application and evidence dates.
Names, diagnoses and policy numbers are unnecessary.
- Verify actual refund receipt and the issued application period.
Keep unknown facts unknown and select other procedure when the ordinary scope does not apply.
- Add every due date and remaining unpaid amount through application.
Correct future due dates or reversed dates highlighted by validation.
- Enter confirmed total interest or select simple/annual-compound assumptions.
Choose unknown, assumed or insurer-confirmed restart evidence separately.
- Allocate reserves and available cash, review the evidence checks and calculate.
After editing an input, recalculate before saving or printing.
- Take the worksheet together with the issued terms, notice and ledger to the insurer.
A saved worksheet is neither an application receipt nor an acceptance notice.
Worked example: KRW 300,000 in missed premiums
Assume lapse on 2026-07-01, planned application on 2026-10-15 and an assumed restart on 2026-10-20.
Three installments each have KRW 100,000 outstanding, with 5% annual simple interest and a 365-day denominator.
These are synthetic arithmetic inputs, not an insurer quote or a typical product rate.
Synthetic installment balances, elapsed days and rounded interest| Due date | Balance | Elapsed days | Estimated interest |
|---|
| 2026-06-01 | KRW 100,000 | 136 | KRW 1,863 |
| 2026-07-01 | KRW 100,000 | 106 | KRW 1,452 |
| 2026-08-01 | KRW 100,000 | 75 | KRW 1,027 |
Reconcile the result
- KRW 300,000 principal + KRW 4,342 interest = KRW 304,342 reinstatement cash
- 106 days through application + 5 additional days = 111 full gap days
- 111 × KRW 10,000 daily reserve + KRW 100,000 one-off reserve = KRW 1,210,000 full-gap reserve
- KRW 1,514,342 combined budget − KRW 500,000 available cash = KRW 1,014,342 shortfall
- The 36-month calendar reference is 2029-07-01; without policy verification it is not a confirmed deadline.
The KRW 500,000 allocation covers reinstatement alone but does not cover the wider full-gap scenario.
That reserve difference is household planning, not an additional premium bill.
Changing the interest method or replacing estimated interest with a confirmed quote changes the comparison, so align the insurer quote with the same application date and ledger.
Practical family planning scenarios
Recovering after a temporary cash shortage
If retirement or interrupted income caused several missed installments, check more than the nominal premium sum.
A family member can reconcile the notice and ledger, identify the payment shortfall and ask the insurer for the applicable interest and application procedure.
A later application can add installments or interest; update all affected rows before comparing another date.
Consulting before restart is known
You do not have to force a full-gap budget while underwriting timing and rider coverage remain unclear.
Save the principal ledger and unknown-item checklist first, then enter the insurer’s interest and timing information after consultation.
Keep assumed-date scenarios separate from the worksheet prepared using verified information so family members understand which facts remain unsettled.
Interpretation and limits
- Within-time and sufficient-budget results are not approval or confirmed coverage.
Disclosures, underwriting and actual policy status require insurer review.
- The engine does not determine valid notice, dispute liability or payment of a specific claim.
Separate procedures such as special reinstatement after compulsory execution require their own review.
- It recommends no replacement product and predicts no future surrender value, policy-loan approval or financing availability.
If borrowing to fund a payment, examine the borrowing cost and repayment separately.
- The framework was checked in 2026; older issued terms and procedures applicable at a future filing date must be rechecked.
Your inputs determine the scenarios, which do not guarantee actual costs.
Use the saved worksheet in an insurer consultation
The TXT report preserves entered dates and evidence states, installment details, interest, deadline basis, restart assumptions and unresolved items.
It contains the figures and dates you entered, so review it before sharing.
After changing a field, recalculate before saving to avoid confusing different scenario dates or assumptions.
- Ask whether the quote includes everything payable through application and whether another regular premium will be due afterward.
- Confirm holiday treatment, the actual receipt cutoff and what constitutes complete submission.
- When the insurer’s interest differs, reconcile accrual and rounding and prefer the matching confirmed total.
- Check coverage start, waiting or reduction periods separately for the main contract and riders, and retain the date of the insurer’s explanation.
Frequently asked questions
Does paying the overdue premiums automatically reinstate a policy?
Having enough cash does not constitute approval.
Follow the issued policy procedure and confirm disclosures, underwriting and the insurer’s acceptance.
Is every reinstatement application period three years?
Three years is the life and disease/injury standard-terms reference used for the initial 36 months.
Commercial Act Article 650-2 does not itself impose a universal three-year period on every policy.
Check your issued terms and actual insurer deadline.
Can I use this result if I already received the surrender refund?
Nonpayment of the surrender refund is an important ordinary reinstatement condition.
Received or unknown refund status requires insurer review.
A loan offset and an actual refund payment are different facts.
Should I enter zero if I do not know the interest?
Leave the interest mode unknown.
Only use insurer-confirmed total interest of KRW 0 when the insurer has actually confirmed zero.
This allows the principal-only payment total without disguising missing information.
Is annual-compound estimation the insurer’s billing method?
The estimate uses the annual rate and 365- or 366-day denominator you choose.
Insurer accrual dates, compounding intervals and rounding may differ.
Replace the estimate with confirmed total interest when you receive a matching payment quote.
Will reinstatement cover events during the lapse?
This calculator does not grant retroactive cover for events before the reinstatement application.
Confirm coverage start date and time, rider exclusions, reduction periods and the event date with the insurer.
A particular claim requires separate review.
Can I calculate anything without a coverage restart date?
You can still see outstanding principal, the ledger and the gap through application.
The full-gap reserve stays withheld.
An assumed restart date enables budgeting but remains clearly different from an insurer-confirmed date.
Is the gap reserve an expected insurance benefit or the next premium?
It is full gap days multiplied by your chosen daily cash reserve plus a one-off reserve.
It estimates no payout, disease probability, expected loss or future regular premium.
Avoid double-counting actual spending and reserve categories.
Official sources and the verified 2026 framework
On 2026-10-15, the National Law Information OPEN API was used to verify Commercial Act ID 001702, MST 273629, including Article 650-2.
This current act was promulgated on 2025-09-09 and took effect on 2026-09-10.
The insurance supervision implementation rules, ID 2041116 / sequence 2200000108939, were issued on 2026-08-28 and took effect on 2026-09-10.
Annex 15 life terms Article 27 and disease/injury terms Article 29 were checked directly.
The MOLEG Easy Law explanation carries a 2026-09-15 information date.
Future maintenance must recheck standard-terms amendments, the wording issued at purchase, refund status, product-specific rates, accrual and rounding, receipt deadlines and coverage start by rider.
Actual policy records and matching insurer information take precedence over initial examples and general explanations.
Organize the ledger, then request insurer review
Enter the lapse date, unpaid installments and known or unknown interest, then save the cash shortfall and review checklist.
Take the worksheet with the notice and issued wording to discuss the actual reinstatement procedure and the family’s funding schedule.