How to Revive Lapsed LIC Policy ?
LIC is an acronym for Life Insurance Corporation of India. It is the state level Insurance Group that has its headquarters in the city of Mumbai in the state of Maharashtra. Based on the asset values, LIC is the leading Insurance Company in the country. Originally, LIC established in the country in the year 1956 after passing the LIC Act by Parliament of India. There are numerous benefits for people who have LIC policy. The people can easily acquire Life insurance, health insurance, mutual fund and investment management.
The people who are already LIC policy holders can acquire all the benefits through this policy. The LIC holder needs to make payment of their monthly premium on or before the due date. Sometimes, the payment process includes yearly basis, half-yearly or quarterly basis. If the LIC policy holder doesn’t pay the premium within the grace period, the policy will expire. In such a case, the only solution is to renewal the expired policy. If you are exploring the web for the process of revival of Lapsed LIC policy, we have come up with a detailed step by step tutorial in this post. Have a look!
Renewal of Expired LIC Policy
It could happen sometimes that the LIC policy holder might forget to make payment of his LIC premium before the last date. The Life Insurance Corporation of India will offer days of grace for every LIC holder. If the holder doesn’t pay the premium before the grace period, the LIC policy will definitely lapse. The holders can easily renew their expired policy based on the medical or non-medical.
The expired LIC policy holders can easily revive it by making the payment of collected premiums along with the interest and providing essential health benefits. In general, the renewal of LIC policy will regard as a fresh contract in which the LIC policy will force the holders to follow all the new terms and conditions. In fact, the revival of LIC policy will completely rely on the original reasons like the LIC policy holder not paying the regular premiums quite often. It also depends on the declaration of Good Health (DGH) and some other medical reports.
Is there a need to Revive Old LIC Policy?
If in case the LIC Policy holder has any expired policy then it is recommended to renewal immediately rather than taking a new LIC policy. This is because; the cost for reviving a lapsed LIC policy quite less compared to taking a new LIC policy.
Key Conditions for Renewal of Expired LIC Policy
Here are some important conditions for all the LIC policy holders who are seeking to renewal their lapsed LIC policy:
- The policy holders can only renewal their revival of LIC policy at the nearest branch of LIC in the country. Make sure that you visit the same branch wherein you have originally taken the policy.
- The LIC policy holder needs to submit a request letter for LIC policy revival using the form no 680 or DGH. You can otherwise use Form no 700 or 720 or some other medical report.
- At the time of revival of LIC policy, the policy holders must and should make their physical appearance.
- There is a possibility of paying the renewal amount either in the form of cash or cheque.
- After renewing the lapsed LIC policy, the holder must and should make payment of the balance premium along with the interest till the date from the date of expiration.
Different Schemes for Revival of Lapsed LIC Policy
If an LIC Policy gets expired, the LIC Company will renew it at any time in less than 5 years of time from the date of FUP (First Unpaid Premium) of the expired LIC policy. The policy holders can easily revive their Lapsed LIC policy by following five different schemes. In this post, we have come up with a list of 5 different schemes for the revival of lapsed LIC policy:
- Ordinary Revival
If the policy holders use this ordinary revival of policy then it effects in less than 6 months of time from the due date of first unpaid premium. The holder need not have to submit a personal statement of health. After collecting the delayed premium and interest, the holders can easily revive their policy.
- LIC Revival on Non-medical Basis
If you want to renew the policy on non-medical basis, the revived amount must not cross the stipulated limit for non-medical assurance. In such a case, the holder needs to make payment of all unpaid premiums starting from the date of 1st unpaid premium along with the interest.
- LIC Revival on Medical Basis
If a policy is unable to revive on ordinary or non-medical basis then, the holders can revive it on medical basis. Based on the amount renewed, the medical necessities will rely.
- Special LIC Revival
If the LIC policy holder is not capable of making the payment of all the premiums in huge amount then it is possible to revive using this special LIC revival.
- Instalment LIC Revival
If the policy holder couldn’t make payment of all the unpaid premiums in huge amount, the special revival scheme doesn’t fit that particular LIC policy holder. Instead of using special revival scheme, the policy holder can use the instalment LIC revival scheme so as to renew their Lapsed LIC policy. The holders can easily revive their policy using this scheme by making the payment of the below mentioned amount instantly as follows:
- In the yearly mode of payment, the LIC policy holder needs to pay half of the yearly premium.
- In the half yearly mode of payment, the LIC policy holder needs to pay one half yearly premium
- In quarterly mode of payment, the LIC policy holder needs to pay 2 quarterly premiums.
- In monthly mode of payment, the LIC policy holder needs to pay 6 monthly premium
The LIC policy holders need to pay the remaining unpaid premium through instalments in less than 2 years of time period along with the regular premium. As per the policy term, the holder needs to provide the Form No 680 or DGH (Declaration of Good Health) and Form No 700 / 720 or medical report.
A LIC Policy holder can renew it by taking a policy loan if in case the policy takes the yield charge on the date of renewal. The LIC policy holder can take the loan based on the premiums paid by the holder till the date of renewal. If the holder fails to pay the complete revival amount then, the holder needs to pay it.