Final answer:
Reinstating a policy generally allows a policyholder to retain the original terms, avoid additional underwriting, and maintain any seniority benefits associated with the original policy.
Step-by-step explanation:
The primary advantage of reinstating a policy rather than obtaining a new one is that reinstatement often retains the original terms and conditions of the policy, including the premium rates, which are usually more favorable if the policy was purchased at a younger age. Furthermore, by reinstating, a policyholder might avoid the full underwriting process again, which can save time and possibly evade exclusion of pre-existing conditions that might have arisen after the original policy was issued. Reinstatement might also retain the seniority or loyalty benefits associated with the original policy.