Missed to renew your LIC insurance policy? Here are 5 easy schemes to avail for reviving your relapsed policy online from the comfort of your home.
When you purchase an LIC policy, it is necessary to ensure that the policy remains active throughout its specific term. This is possible by paying the premium towards the policy on time, at regular intervals, as may be specified by the insurer during the time of policy purchase. In case you fail to make regular premium payments on time, your LIC insurance policy will lapse. This means that with a lapsed policy, you wouldn’t be able to enjoy its protection benefits anymore. In case your policy lapses, the only solution then is to revive it. Here we understand revive meaning and what it means in the context of an LIC insurance policy.
What is the Meaning of Revive Lapsed LIC Insurance?
As stated above, if the policyholder fails to renew the purchased LIC insurance policy on time, the policy lapses, meaning it becomes inactive. In other words, the policyholder would no longer be able to enjoy the insurance benefits under the plan because it has now lapsed. The only option left with the policyholder in this case is to revive the lapsed policy.
Now in case the policyholder was not able to pay the premium amount towards maintenance of the policy on time or within the granted grace period by the insurer, the latter would then offer a two-year revival period to the insured. Within this period, the insured is required to initiate the process for revival of lapsed policy.
Read More: Steps to Revive a Lapsed Life Insurance Policy
5 Schemes for Revive Lapsed LIC Insurance
In case of insurance policy lapse, the policyholder is given two years’ time to revive the lapsed policy. LIC provides a number of schemes to its policyholders for initiating the LIC policy revival process. Here are 5 schemes that an insured can avail of to revive their lapsed plan:
|Name of the Scheme||Key Features of Revival||Conditions for Policyholders Under the Scheme|
|Survival Benefit cum Revival Scheme||Used for renewal of LIC money-back plans||Submission of Survival Benefit Discharge form with self-content of policyholder; revival process under the scheme as per T&C of LIC + loan application|
|Special Revival Scheme||Change of intimation date for the policyholder; payment of single premium as per age at the time of policy revival||Submission of written request by policyholder; revival possible once once during policy term; original commencement date can be changed up to max 2 years|
|Loan cum Revival Scheme||Premium arrears recovered from the loan amount available as per policy terms&conditions||After adjustment of premium and interest, the balance is returned to the life assured; in case loan amount is insufficient to cover premium arrears, difference is paid by the policyholder|
|Installment Revival Scheme||Designed for policyholders who are unable to pay premium at one time and wish to opt for installments||Survival benefit should not be due during the installment period of policy revival; no outstanding loan under the plan at revival time; N/A for policies issued under Salary Saving Schemes|
|Ordinary Revival Scheme||All unpaid premiums including interests to be paid by the policyholder in one go||LIC may ask the policyholder to submit some medical reports under Form 680 for policy revival|
When is LIC Lapsed Policy Refund Possible?
Refund of lapsed policy is available under the various schemes offered by LIC, which are detailed in the above table. The policyholder is entitled to get their money back from the lapsed insurance policy by reviving the plan under any one of the above-mentioned schemes.
What is the LIC Renewal Payment for Lapsed Policy?
The insurer is entitled to charge a penalty or fine from the policyholder for the policy lapse during its revival process. The amount charged may depend on the sum assured under the policy as well as the time period after the lapse of the policy.
However, LIC also offers the policyholders several discounts and fee exemptions on the penalties charged for policy revival. These exemptions completely depend on LIC’s terms and conditions released from time to time.
Note that the LIC lapsed policy revival online payment can be made on the insurer’s portal after duly filling out and signing the LIC revival form by the policyholder.
How is the LIC Policy Lapsed Without Surrender Value?
If the policyholder wishes to opt-out of a plan before it matures, it is known as policy surrender. In this case, the insurer provides an amount to the policyholder which is called LIC policy surrender value.
Under normal circumstances, the surrender value of a policy is computed by LIC only after regular premium payment by the policyholder for 3 years running. In case the policyholder chooses to surrender the plan before a term of 3 years, the insurer (LIC) is not liable to pay any surrender value to the insured.
This means that in case the policyholder failed to pay regular premium amount to LIC and the policy lapsed before the term of 3 years, it would be considered lapsed without surrender value.
Revival of lapsed LIC policy is always recommended since it allows the possibility to the insured to extend the policy coverage. Also, the option to revive lapsed policy is always mentioned in the original policy purchased. Also, by reviving the policy, the policyholder can get their money back from the plan.
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