Approval from LIC is necessary for the revival of any discontinued policy to take effect.
LIC Lapsed Policy Revival: Reviving a lapsed Life Insurance Corporation of India (LIC) life insurance policy is crucial to maintaining the benefits of your policy. The procedure may vary depending on the specific policy and the terms and conditions in your policy document. It is important to adhere closely to LIC’s guidelines and instructions during the revival process.
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How To Revive A Lapsed LIC Policy?
If your policy has lapsed due to non-payment of premiums by the due date, the terms and conditions of the policy contract become void until you revive the policy.
To revive a lapsed policy, you must pay the accumulated premiums with interest and meet any necessary health requirements.
Concessions for claims during the lapsed period:
1. If the policyholder has paid premiums for at least three full years and then stops paying, and if the life assured dies within six months from the due date of the first unpaid premium, the full policy amount will be paid after deducting the unpaid premiums with interest up to the date of death.
2. If the policyholder has paid premiums for at least five full years and then stops paying, and if the life assured dies within 12 months from the due date of the first unpaid premium, the full policy amount will be paid after deducting the unpaid premiums with interest up to the date of death.
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Revivals:
If premiums are not paid within the grace period specified, the policy will lapse.
For policies paid yearly, half-yearly, or quarterly, a grace period of one month or at least 30 days is permitted. For monthly payments, the grace period is 15 days. During this grace period, if death occurs, the full sum assured is payable.
A lapsed policy can be revived according to the terms of the plan. This requires submitting proof of continued insurability to LIC’s satisfaction and paying all overdue premiums along with interest at rates set by LIC.
LIC’s official website states that LIC reserves the right to either accept the revival of a discontinued policy at original terms, accept it with modified terms, or decline the revival altogether. Approval from LIC is necessary for the revival of any discontinued policy to take effect.
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Here’s a step-by-step guide to help you revive a lapsed LIC policy:
- Contact LIC: You can contact LIC through their customer care number, email, or by visiting your nearest LIC branch.
- Request a revival form: You will need to fill out a revival form and submit it to LIC.
- Pay the due premiums and interest: You will need to pay all of the missed premiums, as well as interest on those premiums.
- Submit a medical declaration: You may need to submit a medical declaration to LIC, especially if your policy has been lapsed for a long time. The cost of medical reports, including special reports, if any, required for the revival of the policy shall be borne by the life assured.
- Wait for LIC to approve your revival request: Once LIC has received all of the required documentation and payments, they will process your revival request. LIC will then revive the policy and issue a new policy document.
Once your policy is revived, ensure that you continue to pay your premiums regularly to keep the policy in force and maintain its benefits.
