Final answer:
A Life Insurance policy cannot typically be reinstated without potentially a new physical exam alongside the payment of overdue premiums. Non-forfeiture provisions do apply to lapsed Whole Life policies, and a lapsed policy may be reinstated under certain conditions, but not automatically just by paying the overdue premiums.
Step-by-step explanation:
The statement that is NOT true when a Life Insurance premium is overdue is: The policy will be reinstated without a physical exam if overdue premiums are paid. Typically, reinstatement of a lapsed policy requires not only the payment of all overdue premiums but also potentially a new physical exam, updated health information, or evidence of insurability, depending on the policy terms set by the insurance company.
It is true that non-forfeiture provisions apply to lapsed Whole Life policies, meaning if a policy lapses, the policyholder may still be entitled to partial benefits or a reduced paid-up policy based on the policy's cash value. Also, typically, there is a grace period during which the policyholder can pay overdue premiums without the policy lapsing, but if the grace period expires and the policy lapses, specific conditions must be satisfied for reinstatement.