Articles April 23, 2021

If you have not paid your LIC Policy premium on the due date or within the grace period, the policy lapses. Now, you have only one option left and it’s revival. Following are the types of revival for a lapsed LIC policy:

  1. Ordinary Revival – If the policy is revived within 6 months from the due date of the first unpaid premium, there is no need for a personal statement regarding health. Under this scheme, the policy is revived on the collection of delayed premium plus interest. The rate of interest charged for such a delayed premium will be based upon the date of commencement of the policy.
  2. Revival on a non-medical basis – For the revival of the policy on a non-medical basis, the amount needed to be revived should not be more than the prescribed limit for non-medical assurance taken by the life assured.
  3. Revival on a medical basis – If a policy cannot be revived under ordinary revival or revival on a non-medical basis, it can be revived with medical requirements. The medical requirements are based upon the amount to be revived.

Read this post further and know more about the other schemes for revival.

Different Types of Revival Schemes

The following are the revival schemes through which you can receive a lapsed LIC policy

Special Revival Scheme – A lapsed LIC policy can be revived by shifting the original date of commencement up to 2 years. The conditions for reviving a policy under Special Revival Scheme are:

  1. The policy shouldn’t lapse for < 6 months or > 3 years based upon the date of revival.
  2. The policy can be revived under this scheme only once during the policy term
  3. The maturity age of the life assured shouldn’t exceed the original stipulated period under the respective LIC plan.
  4. Revival requirements will be as per the usual terms and conditions
  5. The difference between old premium and new premium with interest will be collected by the insurer on the date of revival.
  6. Policyholder/Life Assured need to give a written request for reviving the policy under the above scheme.
  7. In the case of a Money Back plan, policy preparation charges and stamp fees need to be paid by the policyholder.

Installment Revival Scheme Revival – Under this scheme, the revival will be permitted to you as per the following conditions:

  1. You cannot pay the arrears of premiums in a lump sum and the policy cannot be revived under the special revival scheme
  2. If the arrears of premiums are for more than 1 year.
  3. No loan outstanding is present under the policy at the time of revival.
  4. No survival benefit should fall during the installment period of revival
  5. In the case of Children Deferred Assurance policies, this revival method will be allowed after the deferment period.
  6. Quotation for the premium payment will be available in the servicing branch
  7. Installment revival scheme does not apply to LIC policies issued under salary saving scheme
  8. The revival requirements will be as per the usual terms and conditions

Loan cum Revival Scheme – In this scheme, the lapsed LIC policy can be revived by recovering arrears of premium from the amount available as a loan under the policy as per the following conditions:

  1. If the loan amount is not sufficient to cover arrears of premium, the difference needs to be paid by the policyholder in the servicing branch.
  2. If the balance amount is left after adjusting the premium and interest, the same need to be paid by the life assured.
  3. The revival requirements will be as per the usual terms and conditions
  4. The loan application and the policy document need to be submitted by the policyholder at the insurer’s branch office

Survival Benefit cum Revival Scheme – The scheme, which is for the revival of money back policies, can be allowed under ordinary revival by taking into account the amount of survival benefit payable to the policyholder. The conditions applicable under this revival scheme are as follows:

  1. Revival requirements are the same as the usual terms and conditions
  2. Policyholders need to submit an S.B. discharge form with the consent of the policyholder to revive the policy under this scheme.

Important Notes

  1. During the lapse period, life risk cover is not available to you unless the policy is revived.
  2. For the revival, you need to pay the unpaid premium and interest with other requirements like – health declaration, medical report, special reports, etc., as may be sought by the underwriter.
  3. LIC will revive your policy based on the number of unpaid premiums, the age of the policyholder and the sum to be revived under the policy.
  4. You are subject to fresh health assessment when a revival is underwritten.
  5. There is no guarantee that the policy will be revived on the same terms as it was originally accepted.
  6. Applicability of various revival schemes will depend on respective plan conditions
  7. Contact your servicing branch for details on the quotation and other health requirements

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