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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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.
You can revive the lapsed LIC plan by paying all unpaid premiums along with interest at once. You would have to submit medical reports.
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.
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.
See Also: How Much Life Insurance Do I Need?
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.
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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