Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Written by
Jeffrey Johnson
Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Reviewed by
Jeffrey Johnson

Updated July 2023

Many policies have specific dollar maximums after which benefits are no longer payable. If you have received benefits under such a policy, the restoration of benefits provision restores the maximum if you go for a stated period of time without receiving benefits. For example, suppose that your policy has a maximum benefit of $100,000, and you receive $20,000 in benefits. At this point your remaining benefit maximum would be $80,000. Then, you do not receive additional benefits for, say, one year. The provision then restores your maximum to the original $100,000.

Case Studies: Restoration of Benefits in Insurance Policies

Case Study 1: Restoring Maximum Benefits

Mr. Thompson has a disability insurance policy with a maximum benefit of $100,000. He has already received $20,000 in benefits. According to the policy’s restoration of benefits provision, if he goes one year without receiving any additional benefits, the policy will restore his maximum benefit to the original $100,000. Since Mr. Thompson doesn’t require any further benefits during the specified period, his policy resets, allowing him to access the full $100,000 benefit if needed in the future.

Case Study 2: Utilizing Restoration Provision

Ms. Rodriguez has a long-term care insurance policy with a maximum benefit of $200,000. She receives $50,000 in benefits for her long-term care needs. However, her condition improves, and she no longer requires ongoing care for a specified period mentioned in the policy. As a result, the restoration provision comes into effect, restoring her maximum benefit to the original $200,000. This ensures that Ms. Rodriguez has access to the full benefit amount if her condition worsens in the future.

Case Study 3: Maximizing Policy Coverage

Mr. Lee has a health insurance policy that includes a restoration of benefits provision. His policy has a maximum benefit of $1 million, and he has already received $800,000 in benefits. Due to his improved health, Mr. Lee does not require any additional benefits for the specified period mentioned in the policy. As a result, his policy restores the remaining $200,000 of his maximum benefit. This restoration provision ensures that Mr. Lee has the potential to access the full policy coverage if he needs it in the future.