How to Revive a Lapsed LIC Insurance Policy?

LIC Insurance Policy provides financial protection to your family if something unfortunate like a death happens to you. However, if you don’t pay the renewal premium within a definite grace period (30 days in case of annual, half-yearly, and quarterly renewals and 15 days for monthly renewals), your policy gets lapsed. However, you can  revive your lapsed LIC insurance policy within 5 years from the date of the first unpaid premium along with the penalty. Wondering how to revive the same?

On this page, we will be talking about different methods to revive your lapsed LIC insurance policy. Keep reading to know more.

Methods to Revive Your Lapsed LIC Insurance Policy

We are showing different methods below that can help you revive your lapsed LIC insurance policy. Have a look!

Ordinary Revival

Under this method of revival, you can revive your lapsed policy by paying the delayed premium plus interest if you are doing it within six months from the due of the first unpaid premium. For this, no personal statement regarding health is required.

The rate of interest for such delayed payment of premium will depend on the date of commencement of the policy.

Revival of Non-medical Basis

If you want to revive your lapsed LIC Insurance policy on a non-medical basis, the amount to be reviewed should not exceed the prescribed limit for non-medical assurance taken by yourself.

Revival on Medical Basis

If you are unable to revive your policy on an ordinary or non-medical basis, you can revive the same by providing a few medical requirements, which will depend on the amount to be revived.

Special Revival Scheme

Under this scheme, you can revive your policy by shifting the original date of its commencement by up to two years. However, the new date of commencement should not fall beyond December 31, 2013. When reviving your policy with this method, you should meet these conditions.

1. Your policy should not have lapsed for less than 6 months or more than 3 years up to the date of revival.
2. You can revive your policy once during the policy term.
3. In the case of a money-back plan, you will need to pay the policy preparation charges and stamp fees.
4. You will need to pay the difference between the old and new premium along with the interest as on the date of revival.

Revival by Installment Method

You can revive your LIC policy even if you can’t pay the arrear premiums in one lump sum. Adhering to the below-mentioned points will help you do too.

1. If the arrears of premiums are for more than 1 year.
2. There is no loan outstanding at the time of revival.
3. No Survival falls due during the installment paying period of revival.
4. For Children Deferred Assurance policies, you can only revive your policy after the deferment period.
5. This method will not apply to policies issued under the Salary saving scheme.

Loan cum Revival Scheme

You can revive your LIC Insurance Policy by recovering arrears of premium from the amount available as a loan under the policy. The other conditions under this revival method are as follows.

1. If the loan amount is not sufficient to cover arrears of premium, you will need to pay the difference in the servicing branch.
2. You will get the balance left after adjusting the premium and interest.

Survival Benefit cum Revival Method

If you want to revive the money-back policy under ordinary revival, the survival benefit amount (payable to the policyholder) will be considered. Policyholders will have to submit an S.B. discharge form with the consent of the policyholder to revive the policy under this method.