Life Insurance Corporation of India (LIC) is giving a chance to revive the discontinued LIC policy with a discount. LIC has started a revival campaign under which you can restart your lapsed LIC policy between 23 August to 22 October 2021. LIE is also giving discount on this. That is, you will not have to pay late fees.
How will the revival campaign work?
LIC said in a press release, policies of specific eligible plans can be revived within five years from the date of first unpaid premium, subject to certain terms and conditions.
It states that policies which have expired during the premium paying term and have not completed the policy term are eligible to be revived in this campaign. However, plans with term assurance and high risk are excluded.
LIC said, “In view of the prevailing circumstances, late fee concessions are being given for term assurance and high risk plans other than those based on the total premium paid.” It emphasized, “There is no concession on medical requirements. Eligible health and micro insurance plans are also eligible for late fee concession.”
Late fee waiver:
For total receivable premium up to Rs.1 lakh, a rebate of 20% in late fee will be given. However, the concession amount cannot exceed Rs 2,000.
For total receivable premium from Rs 1-3 lakh, a concession of 25 per cent in late fee above Rs 2,500 will be offered. In case the total receivable premium exceeds Rs.3 lakh, a rebate of 30 per cent in late fee is allowed, but the concession amount cannot exceed Rs.3,000.
|Total Receivable Premium||Percentage in Late Fee Concession||maximum concession|
|Up to Rs. 1,00,000||20%||2,000 rupees|
|1,00,001 to Rs. 3,00,000||25%||2,500 rupees|
|3,00,001 and above||30%||3,000 rupees|
LIC said that the campaign has been launched for the benefit of policyholders whose policies have lapsed as they were not able to pay premiums on time due to certain circumstances. It is always better to revive the old policy to restore the insurance cover.”
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