Revival of Lapsed LIC Policy – Steps to Revive It Online

Life insurance plays a crucial role during unfortunate incidents or hard situations that may arrive without any warnings. The life insurance policy acts as a life-saver for you and your family in difficult circumstances where financial support is needed. A life insurance policy is a blessing to face every hard situation and keep the future of your family safe. Hence, to purchase an insurance policy is important along with renewing the policy with time to take advantage of the events of emergencies.

Individuals holding the policy are often confused with the idea of the revival of the policy and the whole reviving process. But the procedure is very easy and hassle-free. The requirement of the revival of the policy arises where the insured is unable to make the payment of the premiums on-time or within the grace period, which leads to lapsation of the policy. To continue with the benefits of the policy,
one should know the ways of renewing the policy and getting it back in force when the policy gets lapsed. You can renew the lapsed policy any time within the initial 5 years from the date when you stop paying premiums.

LIC Policy Revival Schemes

If you are looking for a revival of LIC policy, then you must be aware of the 5 different schemes by which you can easily recover the policy.

  1. Ordinary/Simple Revival Scheme: Under this situation, the policyholder can easily revive his/her lapsed policy. All that one needs to do is just to pay all unpaid premiums along with the interests. Also, the policyholder has to take the initiative within 6 months from the lapsation date of the policy. LIC shall not ask for any documents regarding the health condition of the insured person.
  1. Revival on Non-Medical Basis: To revive the policy by this scheme, the revival amount should not be more than the specified limit for the guaranteed non-medical basis of the policyholder.
  1. Revival on Medical Basis: In cases where the policy cannot be revived by the ordinary revival scheme or by a non-medical basis, it can be revived by submitting the medical records and other standards asked by LIC. The conditions will be asked on the basis of the revival amount.
  1. Special Revival Scheme: In this revival scheme, the initiation date of the policyholder can be changed and he/she shall pay a single premium according to the age at the time of revival. A person can take advantage of the special revival scheme when he/she is not able to repay the premium in a lump sum. Under this scheme, the 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, few conditions need to be completed.
  2. Such conditions are as follows:

    • One must use a special revival scheme for the entire policy tenure.
    • The insured can also opt for a special revival scheme in the starting 3 years of the lapsed policy.
    • Under the policy, no surrender value acquired by the insured person.

    As a consequence, a special revival scheme can be chosen and carried out in the first 3 years from the date of initiation.

  1. Installment Revival Scheme: A number of schemes are available so that the policyholders can choose the right scheme for the revival process.  One of the best revival schemes is the installment revival scheme. This scheme is especially for those who are not able to pay the premiums that are due to date in a single amount and can choose to pay the due premiums in installments. If you are going for an installment spoon, then there are few ways through which you can continue.
    • For yearly premium payment term, an insured has to pay half the amount of the yearly payment.
    • For the half-yearly premium payment term, the insured has to pay one half of the yearly premium.
    • For quarterly premium payment term, the insured have to make 2 quarterly payments. Under the monthly mode, the policyholder can pay a regular 6 months premium under the monthly mode.

    The insured can pay the rest of the amount in equal installments in the first 3 years together with regular premiums.

  1. Survival Benefits Cum Revival Scheme: The insured can simply renew the money-back policies by utilizing the survival benefit cum revival scheme. Also, in the case where the due date for benefit comes before the date for reviving the policy, the individuals holding the policy are eligible to claim for the benefits of survival. The policyholder has to make an extra payment if the revival amount exceeds the benefit amount for survival or the survival benefit amount exceeds the revival amount.
  1. Loan Cum Revival Scheme: The insured person can also opt for a 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 acquires a surrender value. The individual may need to make payment of an extra amount in the event where the revival amount is insufficient. If the loan amount is higher than the revival amount than the extra amount will be paid to the policyholder.

Why Is It Essential to Revive Lapsed LIC Policy?

Suppose there is an insured person who has a life insurance policy and he is suffering from any critical illness just a few days before the expiry of the policy. In such a situation, if he does not revive his Life insurance policy, then he may have to face several difficulties just to purchase a new one. Moreover, he will be unable to reap all the relevant benefits of the already existing plan because of the lapstion of the policy.
In a nutshell, the renewal of the valuable life insurance policy provides a choice of extension of the cover because LIC cannot reject or diminish the appeal for the revival of your policy. And the revival is also considered for a reason as it is already mentioned in the policy documents.

Things to Remember

If the policyholder fails in payment of premiums prior to the due date, the policy will lapse. You can easily revive your LIC insurance policy as it is not a prolonged process and can be done simply by keeping in mind the following factors:

  • Duration: Revival of policy can be done and initiated only if the policy has not exceeded a specific duration of time from the lapsation date of the policy. This time period will be determined by LIC, which is also dependent on the type of policy.
  • Health Records: The insurance company may ask for the medical reports on the basis of the age of the insured and the sum assured of the policy. If the policyholder has a medical history and under treatment from a long time then he/she has to submit the medical reports.
  • Visit the LIC Branch: A declaration for the revival of the policy is inclusive of a policy quote which is basically a sum of all the due premiums. The whole amount should be paid to LIC by the insured person along with the interests and has to visit the nearest branch to receive quotes for the revival process.
  • Considerable Fines: The insurance company may charge some fines/penalties for revival the policy depends on the sum assured and the period after the policy gets lapsed.
  • Availability of Concessions: The life insurance companies offer various campaigns with discounts and fee exemption on the penalties for the revival of policies. These can be availed only on the terms and conditions released by LIC from time to time.


The above-mentioned approaches to revive a policy after a policy gets lapsed are summarized by LIC. After lapsation reviving a life insurance policy can be a little expensive but policy revival has advantages along with the revival. Moreover, it costs less than buying a new policy with high premiums. The only condition that needs to be fulfilled is that the policy has to be in the time limit for the revival purpose. In most of the cases, the revival duration is 6 months after the lapsation date else you need to visit the branch for the rest of the situations.

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