LIC offers a window for the revival of lapsed policies

Great news for LIC Policy Holders! To revive a lapsed LIC policy under this special offer, policyholders should contact their Policy agents.

by Akansha_B Updated: 08 Apr, 2022, 14:31 IST
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The Covid19 pandemic has taught us how important life insurance is to everyone. Many citizens are now insured. Unfortunately, many of these insurances expire each year because the premiums are not paid by the due date. However, expired policies can be revived. India Life Insurance Company (LIC), the country's largest life insurance company, has launched a campaign to encourage policyholders to revive expired insurance policies. This special window will remain open until October 22, 2021.

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What is the Eligibility to revive your policy?

With Irdai's insurance policy, if the policyholder stops paying the premium within the grace period, the insurance policy will be invalidated. For premiums paid annually, semi-annually, and quarterly, the grace period is 30 days. It is 15 days with a monthly payment. To revive expired insurance, you must pay the accumulated premiums in interest. In addition, GST will be charged late fees in accordance with the rules.

As part of LIC's special resurrection campaign, eligible product policies can be resurrected within 5 years from the date of the first premiums payable. In the light of the current situation, insurers also offer overdue concessions for all insurance except term life and high-risk plans. Eligible health and microinsurance companies are also eligible for concessions.

The concession depends on the total premium paid. However, according to the latest LIC products, there are no concessions to medical requirements.

Concession In Late Fee for Eligible Policies

As part of this campaign, LIC offers a 20% concession on late fees, offering a total receivable premium up to Rs 1 lakh although a maximum concession limit of Rs 2,000 is allowed. However, the customer will receive a 25% late fee rebate for the total compensation in the range of Rs 1,00,001 to Rs 3,00,000, but the maximum rebate amount will not exceed the Rs 2,500 threshold.

On the other hand, the largest insurance company in the country offers a 30% concession on late fees, with a total premium of over Rupees 3,00,001. In this case, the maximum concession is Rs 3,000.

Total Receivable Premium

Percentage allowed in late fee concession

Maximum Concession Allowed

Up to Rs.1,00,000

20%

Rs.2000

From 1,00,001 to Rs.3,00,000

25%

Rs.2,500

From 3,00,001 and above

30%

Rs.3000

The policyholder can contact its representative to revive the expired LIC policy under this special offer. You can also download the revival form from the official LIC website. You must fill out the form and submit it to the LIC office with the pending premium amount with a late fee.

5 Comments  |  
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Deal Cadet Deal Cadet

In most cases it would be better to just buy a new term plan than revive lapsed policy

Deal Newbie Deal Newbie

Is there any such option for SBI life too?? rolleyes

Rajasthan Royals Rajasthan Royals
Rdb1947 wrote:

In most cases it would be better to just buy a new term plan than revive lapsed policy

Can you please explain a bit?

Deal Cadet Deal Cadet
Rdb1947 wrote:

In most cases it would be better to just buy a new term plan than revive lapsed policy

True

Deal Subedar Deal Subedar

I checked for 10+ of my policies… the best offer i got was a mere 4% lesser interest rate on pending emi amount… so basically they charge approx 6% as annual penalty instead of 10/11% on pending dues.. I personally found it useless as LIC returns are hardly 2-3% in recent years…

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