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How to Revive Lapsed LIC Policy?

IndianMoney.com Research Team | Updated On Tuesday, November 05,2019, 04:54 PM

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How to Revive Lapsed LIC Policy?

 

 

Life Insurance Corporation or LIC has allowed you and other policyholders to revive lapsed life insurance plans which are over 2 years. Earlier, polices which were lapsed for more than 2 years couldn’t be revived.

You need to revive life insurance plans when you fail to pay premiums within the grace period. The coverage of the policy lapses and you are left with no cover. Reviving a life insurance plan is equally important as availing life insurance.

If you are a policyholder whose LIC plan has lapsed, this is an excellent opportunity to revive it. Restore life cover and enjoy financial security.

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How to Revive Lapsed LIC Policy?

How to Revive a Lapsed Life Insurance Plan?

If you don’t pay the life insurance premium before the due date, it lapses. A lapsed life insurance plan can be revived within a particular time. LIC has allowed policyholders to revive lapsed life insurance plans which are more than 2 years old.

You Must Visit the Insurer’s Branch: You must visit the insurer’s branch and get a revival quote. The revival quote gives the total of all premiums which are due on the plan. You will have to pay the premiums to revive lapsed life insurance plan.

Get the Medical Report Done: You must submit a declaration of good health, depending on sum assured and age. Insurers might ask for the medical report.

Pay the Unpaid Premium: If you want to revive the lapsed life insurance plan, pay off all the unpaid premiums along with interest due.

Penalty: You may have to pay a revival penalty depending on the period since the life insurance plan lapsed.

See Also: Term Insurance Plans with Return of Premium

How to Revive the Lapsed LIC Plan?

Ordinary Revival:

You can revive the lapsed LIC plan by paying all unpaid premiums along with interest at once. You would have to submit medical reports.

Special Revival:

If you are unable to pay the premium in a lump sum, take the special revival scheme. Under the special revival, the date of commencement of the insurance holder would be shifted.

  •  You can revive the policy only once in the entire policy tenure.
  • The revival scheme can be availed only once within 3 years of the policy lapse.
  •  The policy should not have acquired any surrender value.

Installment Revival:

If you are not able to pay due to premiums as a lump sum and also the special premium, use the installment revival scheme and revive lapsed LIC Plan.  

  • Under the yearly premium mode, you will have to pay half of the yearly premium.
  • Under the half-yearly mode of premium payment, you will have to pay one half of the yearly premium.
  • Under the quarterly premium payment mode, the 2 quarterly payments must be paid by the insured person.
  • You can pay a regular 6 monthly premium under the monthly premium payment mode. The remaining due premium is paid by the insured in equal installments within a period of 2 years along with regular premium as per policy tenure.

See Also: How Much Life Insurance Do I Need?

Survival Benefits cum Revival Scheme:

This is suitable to revive lapsed money back life insurance plans. If the survival benefit due date is earlier than the in line for renewal date, you can avail survival benefit to revive the policy.

Loan Cum Revival Scheme:

If your policy has acquired surrender value within the revival date, revive it with a policy loan. The loan can be availed depending on the number of premiums paid till the revival date. If the revival amount is short of the amount procured with the loan, you must pay the difference. If your loan amount exceeds the revival amount, the excess amounts is returned to the policyholder.

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IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

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