There is no doubt in saying that an unwanted incident, mishap can easily occur without any invitation or notice, for such cases owning a life insurance policy is really very important. An effective life insurance policy will help in securing the future of your loved ones and keep them ready to face such drastic incidents. We all know that buying an effective life insurance policy is really important and need of today’s world as well, but do you know that renewing your policy on time is also very important to reap the benefits of the same in case of emergency and moreover revival of lapsed policy is also crucial.
Well the concept of revival is really very simple, the situation of revival occurs when the policyholder fails to pay the premium within the defined time period or grace period and then the policy lapse. You must know about the inclusion of revival policy because as a policyholder, you should know the ways of renewing your policy and getting it back in case of lapsation. You can renew the lapsed policy any time within the initial five years from the date when you stop paying premiums.
Revival of the LIC policy
If you are looking for revival of LIC policy, then you must be aware of the 5 different schemes under which you can easily do the same.
- Ordinary Revival– Under this situation, the policyholder can easily revive his/her lapsed policy, All he/she need to do is just pay all the unpaid premiums along with the interest together. Moreover, just be ready in case, where the insurance company asked for a declaration of good health along with a few medical reports.
- Special Revival– Under this scheme of revival the date commencement of the insured person can be shifted and he/she can pay a single premium as per the age at revival time. A person can take advantage of the special revival scheme when he/she is not able to pay the premium in a lump sum. Under this scheme too, insurance company can ask for a declaration of good health and a few medical records. If a person wants to revive his/her policy under the special revival scheme, then there are few conditions that need to be complete. Such conditions are.
- Yu have to use special revival scheme for the entire tenure of the policy.
- The policyholder can also go for special revival within the initial 3 years of the policy lapsation.
- The Policyholder should not acquire any surrender value under the policy. That’s why the option of special revival option can be executed in the initial 3 years of the commencement date.
- Installment Revival-There are many schemes for the ease of customer and installment revival is one of them. In case where the policyholder is not able to pay the due premium in a lump-sum, then under the revival scheme he can use the installment option. If you are going for instalment option, then there are few ways through which you can continue,
In case of yearly premium, a policyholder should pay half of the yearly payment.
In the half-yearly method, the policyholder should pay one half of the yearly premium.
In the quarterly premium section, the policyholder has to make 2 quarterly payments.
Under the monthly mode,the policyholder can pay regular 6 months premium under the monthly mode.
The policyholder can make the rest of the payment in equal installments within the initial years along with the regular premium.
- Survival Benefits Cum-Revival Scheme– A policyholder can easily use this scheme to revive the money back policies. If, this benefit due date comes prior than the in line for renewal date, then the policyholder can easily avail the survival benefit. A person has to pay the extra amount in case the amount for revival is more than the survival benefit and vice-versa.
- Loan Cum Revival Scheme – A policyholder can also go for loan cum revival scheme. Under the same the policyholder can use this benefit by taking the policy loan on the date of revival of the policy that acquires a surrender value. The policyholder may require to pay an additional amount in case there is any shortage in the revival amount. If the loan amount is greater than the revival amount than the extra amount will be paid to the policyholder.
Importance Of Revival : Why It Is Essential To Revive Lapsed LIC Policy?
Suppose there is an insured person who have a life insurance policy and he is suffering from any critical illness just a few days before the expiry of the policy. In such situation, if he does not revive his Life insurance policy, then he may have to face several difficulties just to purchase a new one. Apart from that, he would not be able to grab all the useful benefits of the pre-existing policy as its benefits got lapsed.
Basically, the revival of your effective life insurance plan offers an option of extending the coverage as the insurance company cannot decline the revival of your policy as the option of the same is always there in the policy’s document.
You can easily revive your LIC insurance policy as it is not a prolonged process and can be done simply by following a few steps.
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