Any policy needs to be revived when you are unable to pay the premium even within the grace period. In this case the coverage in the policy stops and you remain without any cover. Just as it is necessary to get life insurance, in the same way it is equally important to revive life insurance policy if it lapse. Sometimes customers are unable to pay the premium due to some reason and their policy lapse. Realizing this problem of customers, the Life Insurance Corporation (LIC) has given its policyholders the facility to revive the life insurance policy which has been closed for more than two years.
Earlier, policies that had lapsed for more than two years could not be revived, but now they can be operational. On the launch of the scheme, LIC Executive Director Vipin Anand said that sometimes due to various reasons, the situation is such that individuals are unable to pay their premium and their plan lapse. In this situation, it is a better way to revive the old plan than to buy a new plan to retain the insurance cover. If you had taken a policy from LIC and your policy lapsed, this is a good opportunity to revive it. So through this article we are going to tell you how you can revive your lapse policy.
How to revive a laps life insurance plan?
If you are unable to pay the life insurance premium before the due date, then your policy lapse. Laps life insurance plans can be revived within a specific time. LIC has given the facility to revive Laps Life Insurance to those policyholders whose policy has been closed for more than two years. You will have to take care of the following things to get your policy closed
Contact the company’s branch – You should visit the branch of your insurance company and seek information from the company regarding revival of the policy. The company will inform you of the total premium due as per your plan. You have to pay the premium to revive the policy.
Submit Medical Report – The insurance company may ask about your medical report. In such a situation, you should prepare your medical report beforehand and you are healthy, the report should be submitted to the company.
Pay Outstanding Premium – If you want to revive your Laps life insurance plan, you will have to pay the outstanding premium along with the interest payable.
Penalty – You may have to pay a penalty in the form of penalty for reviving the life insurance plan after it lapse.
Types of revives
Ordinary or Common Revival (Ordinary Revival) – You can revive the Laps LIC scheme by paying all the outstanding premiums with interest at one go. You must submit your medical report.
Special Revival (Special Revival) – If you are unable to pay your dues premium in one go, you can opt for a special revival plan. Under this, the start date of the insurance holder is changed.
- You can revive the policy only once in the entire policy term.
- Revival plan can be availed only once within 3 years of the policy lapse.
If you are unable to pay your outstanding premiums in a lump sum or under special revival, you can get your Laps LIC policy revived through installments.
- Under the annual premium mode, you have to pay half of the annual premium.
- Under the half yearly mode of premium payment, you have to pay half of the premium annually.
- Under the quarterly premium payment mode, the insured will have to pay 2 quarterly payments.
- You can pay regular 6 monthly premiums under the monthly premium payment mode. The remaining premium payable can be paid over a period of 2 years with regular premium as per the policy term.
With this facility, the policyholders of LIC can get the general insurance policy purchased after January 1, 2014, within a period of five years from the date of non-payment of premium for the first time. At the same time, customers who take a unit linked policy can revive it within three years of the last premium payment made.