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Revival of Lapsed LIC Policy - Steps to Revive It Online

Life insurance policy plays a prominent role in case of any eventuality or mishap occurred to anyone at any point in time. It also acts as a life-saver for you and your family in difficult circumstances, where financial support is needed. When you purchase life insurance, it's essential to renew it on time. If you miss it, your only option is to revive the policy.

The revival of lapsed LIC policy arises when the insured is unable to make the payment of premiums on-time or within the grace period. During the same, the policyholders are not able to avail the benefits of the life insurance policy. Typically, insurance companies are required to offer a revival period of two years to reinstate insurance policies.

LIC Policy Revival Schemes

Life Insurance Corporation of India offers different types of revival schemes to policyholders who haven't made payment of premiums on-time or within 30 days of the grace period. Below mentioned are various LIC policy revival schemes:

  1. Special Revival Scheme

    In this revival scheme, the intimation date of the policyholder can be changed, and (s)he shall pay a single premium according to the age at the time of revival. If a person wants to revive the insurance policy under the special revival scheme, few conditions need to be completed-

    • The policy can be revived only once during the policy term.
    • The lapsed policy can only be revived if it has not expired for a period of fewer than 6 months or more than 3 years from the date of revival.
    • Under the special revival scheme, the policyholder has to give a written request for reviving the policy.
    • A lapsed policy can be revived under the revival scheme by shifting the original date of commencement by the period of maximum two years.
    • Under the Money Back Plan, policyholders have to bear policy preparation charges and stamp fee.
    • The insurer will charge the difference between the old premium and new premium along with interest as on the date of revival.
  2. Instalment Revival Scheme

    This scheme is especially for those who are not able to pay the premiums of the LIC policy in a single go and want to do it in instalments.

    There are few conditions under which policyholder can avail Instalment Revival Scheme:

    • There should be no loan outstanding under the policy at the time of revival.
    • No survival benefit should fall due during the instalment paying period of revival.
    • For Children Deferred Assurance policies, revival can be done through instalment method after the deferment period.
    • Instalment revival scheme is not applicable for any policies issued under Salary Saving Schemes.
  3. Survival Benefit cum Revival Scheme

    The insured can renew the money-back policies by utilising the survival benefit cum revival scheme. Given below are the requirements for reviving the policy under survival benefit cum revival scheme:

    • Revival procedures will be as per the terms and conditions as applicable from time to time, along with the loan application.
    • Policyholders need to submit the survival benefit discharge form with self-consent to revive the policy.
  4. Loan cum Revival Scheme

    Under the scheme, lapsed policy can be revived through recovering arrears of premium from the amount available as a loan (under the policy) as per the terms and conditions of the policy.

    Given here are some of the conditions of revival under the policy:

    • If the loan amount is not enough to cover the arrears of premium, then the difference will be required to be paid by the policyholder in the serving branch.
    • The life assured will be paid the balance left after adjusting the premium and interest.

Importance of Revival of Lapsed LIC Policy

Let's explain with the help of an example. Mr. A bought a life insurance policy last year. He forgot to pay its premiums and the policy lapsed due to it. After a few months from it, he met with an accident and died on the spot. As the policy was inactive, the nominee was unable to claim its benefits.

If he had revived the policy earlier, the nominee would have received the necessary coverage to meet his/her future expenses.

Important Aspects

You can easily revive your LIC insurance policy by keeping in mind the factors listed below:


Revival of policy can be done and initiated only if the policy has not exceeded a specific duration of time from the lapsation of the insurance policy. The period will be determined by the LIC, which is also dependent on the type of policy.

Health Records

The insurance company may ask for the medical reports based on the age of the insured and the sum assured of the policy. If the policyholder has a medical history or is under treatment for a long time, then he/she will be required to submit the medical reports.

Considerable Fines

The insurance company may charge some fines/penalties for the revival of the policy. This depends upon the sum assured and the period after the policy has lapsed.

Availability of Concessions

LIC launches various campaigns with discounts and fee exemption on the penalties for the revival of policies. It totally depends on the TnCs released by the company. For example, a recent campaign run by the company from 10th August to 9th October 2020.


The revival of lapsed LIC policy is not an extensive process. Policyholders can quickly revive the policy online by visiting the official website of LIC or visit the nearest branch of the company.

Written By : Naval Goel

Last Updated : December, 2019

Naval Goel is the CEO & founder of PolicyX.com. Naval has an expertise in the insurance sector and has professional experience of more than a decade in the Industry and has worked in companies like AIG, New York doing valuation of insurance subsidiaries. He is also an Associate Member of the Indian Institute of Insurance, Pune. He has been authorized by IRDAI to act as a Principal Officer of PolicyX.com Insurance Web Aggregator.

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