Revive Lapsed LIC Policy
LIC offers a plethora of insurance solutions to protect an individual’s financial goals. The premium rates for the various plans vary, and customers can pay according to the payment options specified in the appropriate plan. However, a policy can expire if the premium is not paid within the specified time frame. The Life Insurance Corporation of India (LIC) has announced a special campaign to revive lapsed policies, which will provide significant comfort to policyholders.
Read forward to know more about this campaign!
What Is LIC Lapsed Policy Revival?
LIC Lapsed Policy Revival is a scheme that was launched by LIC on August 23, 2021. Customers who have been unable to make premium payments for a period of up to five years are eligible for this program. They can reactivate their expired policy by paying the premium, including the late fee.
According to LIC, this campaign is just for non-ULIPs, and some plans, such as micro-insurance, health insurance, and canceled ULIPs, are not eligible for revival. In this program, the insurer offers policyholders a 30 percent discount on late fees.
How To Revive A Lapsed LIC Policy?
Policyholders can reactivate their policies directly with the insurer by paying the late payment interest. Keep in mind that the insurer has the last say on whether or not to accept or reject the policy. The advantages of the plans are also reinstated whenever the policy is reactivated. To complete the revival process for LIC insurance, you can call the agents or go to the branch. You can also inquire about revival procedures by contacting your insurer’s customer service department.
However, it is generally preferable to keep the policy active by paying premiums on time. Typically, LIC will send a premium reminder via letter, text message, or both.
Terms & Conditions Of LIC Lapsed Policy Revival
Following are the terms and conditions for LIC Lapsed Policy Revival Scheme:
A 20% discount on late fines would be provided for total receivable premiums of up to Rs 1 lakh. The concession amount, however, cannot exceed Rs 2,000.
A 25% discount on late fees up to Rs 2,500 would be provided for total receivable premiums ranging from Rs 1-3 lakhs.
A 30 percent late charge remission is allowed if the total receivable premium exceeds Rs. 3 lakhs, but the concession amount cannot exceed Rs. 3,000.
The revival of LIC policy can be done under 5 schemes as follows:
Survival Benefits-Cum-Revival Scheme
Only policies where the policyholder pays all premiums plus interest, and any revival requirements, if applicable, up to the date of revival will be eligible for a late charge reduction.
In the event that there is a gap in interest (late fee) after granting the late fee concession, the provision to construct an x-charge as per the current rule is allowed.
Things To Consider While Reviving Lapsed LIC Policy
While reviving your lapsed LIC policy, you should keep in mind the following factors:
Policy Duration: A policy can only be renewed if it hasn’t been more than a certain amount of time since it is expired. The tenure of LIC is determined by the type of insurance.
Medical Reports: Medical records may be requested by the LIC company dependent on the plan’s sum assured and the insured’s age. If the insured has a medical history or is receiving treatment for a long period of time, the health reports must be submitted.
Penalties: For restarting the policy, the LIC company may levy fines or penalties. It is determined by the amount of the sum assured and the length of time after the policy has expired.
Concessions: LIC has run a number of campaigns offering discounts and cost waivers on the penalties for renewing the policy.
Frequently Asked Questions
1. Is it possible to revive my lapsed LIC policy after 7 years?
If the payment is not paid during the grace period, which is 30 days for annual, half-yearly, and quarterly renewals and 15 days for monthly renewals, an insurance policy is regarded ‘lapsed.’ It can be revive at any moment after the first unpaid payment has been paid for a period of five years.
2. What is “Ordinary Revival” under the revival scheme of lapsed LIC policy?
Under the ordinary revival scheme, policyholders can revive their expired LIC policy by paying all unpaid premiums in one lump sum, beginning with the first premium that was not paid. The payment of these unpaid premiums will also be subject to an interest rate of 8%.
3. Is it possible to cancel my lapsed LIC policy online?
First and foremost, keep in mind that surrendering a LIC policy online is not now possible. In addition, you must surrender your LIC policy only at your servicing LIC branch. Keep in mind that you must go to the branch in person to request the surrender of your LIC policy.
4. How can I know that my LIC policy has lapsed?
For New Users
Visit the customer portal of LIC.
Click “New User”.
Fill in all the essential details, such as name, gender, date of birth, policy number, etc., and click “Proceed”.
The policy status will be displayed on the screen.
For Registered Users
Visit the customer portal of the LIC website.
Click on “Registered Users”.
Enter all the essential details, such as name, date of birth, etc., and log in to your account.
Then click on “Policy Status” and your policy’s information will be displayed on the screen.
5. Why the revival of lapsed LIC policy is important?
Assume that a policyholder with a life insurance policy from LIC suffers a critical disease right before the policy’s expiration date. If the insured person’s policy is not resurrected in such a circumstance, he or she may have a difficult time finding a new insurance policy. Furthermore, they will no longer be able to make use of the pre-existing policy’s benefits, as the policy’s benefits would expire.