Curated By: Business Desk
Last Updated: September 18, 2023, 10:41 IST
LIC Lapsed Policy Revival: Reviving a lapsed Life Insurance Corporation of India (LIC) life insurance policy is essential if you want to continue enjoying the benefits of your policy. The process may vary slightly depending on the specific policy and the terms and conditions outlined in your policy document. It’s essential to follow LIC’s guidelines and instructions closely during the revival process.
It is advised to keep your policy in force to ensure that your family gets their financial protection assured by your policy.
Also Read: Term Insurance vs Life Insurance Difference: Which Policy Fits Your Needs Best?
However, certain concessions dependent on the term for which you have paid the premiums are available with the exception of some plans for claims concession.
How To Revive A Lapsed LIC Policy?
If your policy has lapsed due to non-payment of premiums within the due date, the terms and conditions of the policy contract are rendered void, till you revive your policy.
A lapsed policy has to be revived by payment of the accumulated premiums with interest as well as giving the health requirements as required .
Concessions for claims during the lapsed period:
1. If the policyholder has paid premiums for at least 3 full years and subsequently discontinued paying premiums, and in the event of death of the life assured within six months from the due date of the first unpaid premium, the policy money will be paid in full after deduction of the unpaid premiums, with interest upto date of the death.
2. If the policyholder has paid premiums for at least 5 full years and subsequently discontinued paying premiums and in the event of death of the life assured within 12 months from the due date of first unpaid premium, the policy money will be paid in full after deducting the unpaid premiums, with interest upto date of the death.
If premiums under a policy are not paid within days of grace, the policy lapses.
A grace period of one month but not less than 30 days is allowed where the mode of payment is yearly, half-yearly or quarterly and 15 days for monthly payments. If death occurs within this period, the life assured is covered for full sum assured.
A lapsed policy can be revived as per the plan conditions on submission of proof of continued insurability to the satisfaction of the LIC and payment of all arrears of premiums together with interest at such rate as fixed by LIC from time to time.
According to the information available on the official website of LIC, it reserves the right to accept at original terms, accept with modified terms or decline revival of a discontinued policy. The revival of the discontinued policy shall take effect only after the same is approved by LIC.
Here’s a step-by-step guide to help you revive a lapsed LIC policy:
- Contact LIC: You can contact LIC through their customer care number, email, or by visiting your nearest LIC branch.
- Request a revival form: You will need to fill out a revival form and submit it to LIC.
- Pay the due premiums and interest: You will need to pay all of the missed premiums, as well as interest on those premiums.
- Submit a medical declaration: You may need to submit a medical declaration to LIC, especially if your policy has been lapsed for a long time. The cost of medical reports, including special reports, if any, required for the purpose of revival of the policy shall be borne by the life assured.
- Wait for LIC to approve your revival request: Once LIC has received all of the required documentation and payments, they will process your revival request. LIC will then revive the policy and issue a new policy document.
Once your policy is revived, ensure that you continue to pay your premiums regularly to keep the policy in force and maintain its benefits.