Published By: Business Desk
Last Updated: November 07, 2023, 07:00 IST
LIC Policy Revival: Life insurance coverage serves as a vital safeguard in times of calamity or catastrophe, offering a financial lifeline to you and your family when needed most. Timely renewal of your life insurance policy is of utmost importance, as it can be a real lifesaver in times of stress. Failure to renew your policy on time may necessitate the revival of the lapsed policy.
When policyholders find themselves unable to pay their premiums within the specified timeframe or the grace period, their life insurance policy expires, rendering the coverage temporarily inaccessible. To reinstate this insurance coverage, life insurance companies typically offer a two-year revival window during which policyholders can revive their lapsed policies and regain access to their benefits.
Lapsed Policy: What Is This?
If premiums are not paid within the specified number of days, the insurance policy will expire. A lapsed policy may be reactivated in line with the provisions of the plan upon submission to the corporation of evidence of continuing insurability and payment of all premium arrears plus interest at the corporation’s current rate.
The Life Insurance Corporation of India (LIC), on the other hand, maintains the authority to approve or refuse the reactivation of a cancelled policy. The restoration of the terminated policy will only take effect if permitted by the LIC.
When Do Insurance Policies Become Invalid?
You are usually obliged to pay a set premium on the due date or during the grace period. If you do not do so, your coverage will expire. Also, policyholders must make certain that their premiums are paid on time. They are given a grace period ranging from 15 to 30 days.
The coverage only fails when individuals fail to pay their premiums, even during the grace period.
Here’s How To Revive A Lapsed LIC Policy.
- Policyholders can reactivate their insurance by paying the late payment interest directly to the insurer.
- A lapsed policy can be revived in accordance with the plan conditions upon submission of proof of continuous insurability to the satisfaction of the corporation and payment of all arrears of premiums combined with interest at the rate set by the corporation from time to time.
- Policyholders can finish the LIC insurance revival procedure by calling the agents or visiting the branch.
- They may also inquire about revival processes by calling the customer service department of your insurance.
- The Life Assured shall bear the expense of any medical reports, including special reports, needed for the purpose of revising the policy.