Confused About Right Life Insurance Plan?
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, life insurance companies are required to offer a revival period of two years to reinstate insurance policies.
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:
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-
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:
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:
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:
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.
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.
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.
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
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