Currently valued at $240 billion, Life Insurance Corporation is a state-owned insurance company and the largest in India. Through Life Insurance Corporation of India, customers can avail a number of policies, based on their finances and the security they wish to have for themselves and for their dependents. When it comes to paying the premiums for the plan they have chosen, customers have the flexibility of paying their premiums either annually, half-yearly, quarterly, monthly, or lump sum - depending on what suits their finances. Amongst the many benefits offered by Life Insurance Corporation of India such as the free-look period and grace period, policyholders can even revive their policy if they have failed to pay their premiums by the stipulated date. If the policy has lapsed, simultaneously the benefits of the plan will cease, which makes it important for the policyholder to revive his/her policy. Also, considering that coverage for pre-existing diseases and critical illnesses kicks in only after quite a few months (depending on the policy), it’s important that the policyholder keeps the policy active in case of an eventuality. A policyholder can revive a lapsed Life Insurance Corporation of India policy through the 5 available schemes as discussed below.
Depending on the situation, policyholders have 5 options to choose from to revive their lapsed policy:
For this option of reviving a lapsed policy, all that the policyholder has to do is to pay all the unpaid premiums till date along with the accrued interest over the lapsed period. The policyholder might be requested to submit a medical report as well.
If in case the policyholder does not have the finances to pay the unpaid premiums, he/she can opt for the special revival. In this case, the date of commencement of the policy will be shifted to the revival date and the policyholder has to pay the premium based on his/her age. Here too, the policyholder might be requested to submit a medical report. The special revival is possible based on the below-listed conditions:
If in case the policyholder does not have the funds to clear the unpaid premiums or the lump sum amount, he/she can opt for the installment revival. In this case, the policyholder should:
In the case of money-back policies, the policyholder can use the survival benefit to revive the policy. This is possible only if the survival benefit date falls before the revival date. If the survival benefit is less than the amount to revive the policy, then the policyholder will have to pay the balance amount, but if the survival benefit is more than the amount to revive the policy, the balance amount will be reimbursed to the policyholder.
If in case the policyholder acquires the survival benefit by the revival date, he/she can opt for the policy loan to pay the unpaid premiums. If the revival amount is more than the policy loan, the policyholder will have to meet the cost to revive the policy, but if the policy loan amount is more than the revival amount, then the balance amount will be returned to the policyholder.
Policyholders are granted a grace period to pay the premium and if one fails to do so, then the policy lapses. At this point, the policyholder will have to make use of the revival benefit of the policy.
To revive a policy, you will have to pay all the unpaid premiums as well as the interest that has accrued over the lapsed period of the policy.
You can do it at any Life Insurance Corporation of India office or online as well. All that you have to do is to enter the policy document number and make the payment for the unpaid premiums.
No, you will be offered no coverage if your policy has lapsed.
By reviving a policy, you can continue where you left off. In the case of coverage for pre-existing diseases and critical illnesses, you have to have held the policy for a certain duration (For example, up to 48 months at least for some policies) to be covered under the policy. Continuing the policy will ensure that you serve that duration to be eligible.