I have a LIC Policy, which has been lapsed because I had not paid the premiums. Now I want to revive the same.
Could you please let me know the procedure?
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I have a LIC Policy, which has been lapsed because I had not paid the premiums. Now I want to revive the same.
Could you please let me know the procedure?
A policy lapses if the premiums are not paid within the due date or the period of grace permitted by the insurance company. However, a policy that has lapsed can be revived within five years from the date of first unpaid premium. There are different schemes under which a policy can be revived.
Ordinary Revival Scheme: Under this scheme, all the arrears of unpaid premiums with interest have to be paid. Along with this, 'Declaration of Good Health' in Form No. 680 and medical certificate, if necessary, are required.
Special Revival Scheme: If a person is not in a position to pay all the arrears, then, he can choose this scheme. Under this scheme, the date of commencement will be shifted so that the policy does not lapse just prior to the date of revival -- the date of commencement is advanced approximately by the period of lapse. Other requirements like 'Declaration of Good Health' and Medical certificate wherever necessary are required as in Ordinary Revival.
Reviving a Life insurance policy comes with fair share of costs, and if you have already missed several premiums, it could prove expensive as the interest on the policy begins to compound. In the simplest of cases, you have to pay all the premiums that you missed with an 8% interest, which is the rate stipulated by LIC.Quote:
Originally Posted by Federer
What to do now -
Sometimes, insurers offer special revival schemes, though this does not happen too frequently. So Wait for this.