Last Updated:
Missed paying off your premium with the Life Insurance Corporation of India and now sweating over potential lapse? Don’t take stress, you’re covered.
How to revive your LIC policy if the premium payout is missed. (Photo Credit: X)
Be it a long-term policyholder or a new user, panic is bound to set in if you miss the deadline for your LIC premium payouts. The leading insurance company now allows its policyholders to reactivate their policy plans in case of lapses with various investor-friendly options. There is still time to act in case you’ve missed your LIC premium and do not wish to lose your policy benefits. Here’s all you need to know about what happens when your LIC premium payments are missed and how you can reactivate your policy if it is lapsed.
What Happens When You Miss Your LIC Premium
If you miss paying your LIC premium, here’s what happens next. The Life Insurance Corporation of India (LIC) offers a grace period — 15 days for monthly payments and 30 days for quarterly, half-yearly, or yearly modes.
Your policy will lapse only if the premium is not paid within this grace period. Once the grace period ends, the life cover gets suspended, bonus and loyalty benefits are put on hold, and you lose eligibility for maturity or survival benefits — unless you revive the policy later.
How To Reactivate Your Policy
Your LIC policy can be revived within 2 years or sometimes up to 5 years through the following methods:
Ordinary Revival: As per this method, you’ll have to pay all missed premiums with an 8-10 per cent interest while submitting a health declaration.
Special Revival: Tweak the policy start date. This method is useful for those with 2–5 year lapses.
Loan-Cum-Revival: This method entails using the policy’s surrender value as a loan to pay the dues required to keep your policy active.
Instalment Revival: Pay the revival amounts in parts to reactivate your LIC policy.
Revival Campaigns: During special campaigns, the LIC might waive your late fees.
Step-by-Step Revival Process
Visit the nearest LIC branch or agent and check your policy status.
Fill out Form 680 or a revival request form provided by LIC.
Pay out all the missed premiums with interest.
If your policies lapsed over 6 months or high sum insured plans, the LIC may require medical reports or health declarations by the concerned authority.
Once the process is completed, you will receive an official confirmation from LIC that your policy has been reactivated.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
- Location :
Delhi, India, India
- First Published: