Reviving a lapsed LIC policy isn’t difficult. However, one needs to adhere to certain terms and conditions for successful revival. In most cases, an interest and late fee could also be levied.
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Life insurance policies play an important role in ensuring security to a family after an unfortunate event or mishap and the policies by Life Insurance Corporation of India (LIC) are preferred the most. These policies can be a life-saver for the insured as well as their family in unforeseen circumstances wherein monetary help is needed.
It is essential to pay premiums of a life insurance policy as per the due periods to keep the policy active. If three premiums are not paid consecutively, the LIC policy will lapse.
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Why do you need to revive a lapsed LIC policy?
The need for reviving lapsed LIC policy arises when the insured fails to make the payment of premiums on time or even during the grace period. Whenever the policy lapses, the insured is not entitled to any benefits related to the insurance scheme. Therefore, reviving the policy becomes extremely essential to avail of its benefits. Hence, LIC offers an opportunity to revive a lapsed policy within a period of about two years.
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How to revive lapsed LIC policy?
The insured can revive their lapsed LIC policy with the help of the following LIC revival schemes:
- Special Revival Scheme: Under this scheme, the policyholder’s intimation date can be altered and they can pay for one premium according to their age at the time of revival. However, under this scheme, the lapsed insurance policy can just be revived once during the tenure. Also, you need to pay a charge which would be calculated as the difference between the old and new premium. In addition, interest as on the date of revival is to be paid.
- Instalment Revival Scheme: This scheme is beneficial for those who can’t pay the insurance policy premium at one go and prefer paying it in instalments. However, to avail this scheme it’s essential to make sure that there is no loan outstanding under the LIC policy. Moreover, another condition to keep in mind is that no survival benefit should become payable during the payment of instalments.
- Survival Benefit cum Revival Scheme: The policyholder can renew a money back life insurance policy with the help of a survival benefit cum revival scheme. One thing to note here is that the procedure would be conducted in accordance with the terms and conditions that are applicable from time to time, including loan applications. Moreover, you will be required to submit a survival benefit discharge form with your consent to revive the lapsed LIC policy.
- Loan cum Revival Scheme: Using this scheme, one can receive their policy by paying the outstanding premiums using the loan amount sanctioned under this policy. Apart from adhering to the terms and conditions of the policy, one needs to note that if the loan amount isn’t covering all the dues then the remaining amount is to be paid by the insured person. Moreover, the balance would be returned after adjusting the premiums and interest against the loan amount
