As eventuality and mishap can occur to
anyone at any point of life, having a life insurance plan is must to
have to deal with the uncertainties of life. A life insurance policy is
the best way to secure the financial future of your loved ones even in
your absence. As purchasing a life insurance policy is very important
similarly renewing your policy time to time and revival of lapsed policy
is equally crucial. We can define revival as “to bring back to life”.
The revival of life insurance policy is required
when the insured fails to pay the premium within the grace period and
the coverage of the policy lapses. The inclusion of revival of policy is
must to have as it provides on option to the insured person to renew
the policy and continue with the coverage of the plan. The renewal of
the lapsed policy can be done anytime within 5 years from the date of
unpaid premium.
Revival of the LIC policy
The revival of the LIC policy can be done under the following 5 different schemes:-
1. Ordinary Revival-
under this revival policy the insurance holder can revive his/her lapsed
life insurance policy by paying all the unpaid premiums including the
interests at one go. However, the policy holder can be asked for the
declaration of good health and medical report under form no-680.
2. Special Revival-
under this scheme the date of commencement of the insurance holder can
be shifted and the insured person can pay only one due premium according
to his/her age during revival. Special revival scheme can be availed if
the insured person is unable to pay the premium in lump sum. Under
special revival scheme the insured can be asked for medical report and
declaration of good health under form no-680. There are certain
conditions that need to be fulfilled if the insured wants to revive the
policy under special revival scheme. These conditions are as followed.
- Special revival scheme can be used only on in the entire tenure of the policy.
- The insured person can do special revival only within 3 years of the policy lapsation.
- Any surrender value should not be acquired under the policy. Thus, the special revival option can be implemented within the 3 years of the commencement date of the policy.
3. Instalment Revival- In
case if the insured person fails to pay the due premium in lump sum and
special revival, he/she can use instalment revival scheme to revive
their policy. Under instalment revival scheme the policy can be revived
by paying the amount in following ways.
- In yearly premium mode the policy holder needs to pay half of the yearly premium.
- In half-yearly mode of premium payment, the policyholder needs to pay one half of the yearly premium.
- In quarterly premium payment mode, 2 quarterly payments are required to be paid by the insured person.
- The insurance holder can pay a regular 6 monthly premium under the monthly mode of premium payment.
Rest of the due premium is to be paid by
the insured in equal installments within 2 years along with the regular
premium as per the tenure of the policy.
4. Survival Benefits Cum-Revival Scheme-
Survival benefit scheme can be used to revive the money back policies.
If, the survival benefit due date comes earlier than the in line for
renewal date then the insured person can avail survival benefit to
revive the policy. However, the policy holder will have to pay the
excess amount in case the revival amount is more than survival benefit.
In the same way if the revival amount is less than the survival benefit
then the rest of the remaining amount is paid back to the insured
person.
5. Loan Cum Revival Scheme –
the insured person can also revive the policy by taking the policy loan
if on the date of revival the policy acquires a surrender value. The
insured person will have to pay the additional amount in case there is
any deficit in the revival amount. If the loan amount is more than the
revival amount than the extra amount will be paid to the insured person.
Why Revival of Lapsed LIC Insurance Policy is Important?
Suppose if the policy holder who owns a
life insurance policy suffers any critical illness just before the
expiry of the policy. In cases like this, if the policy of the insured
person is not revived then he/she may face a lot of difficulties to buy
any new insurance policy. Moreover, they won’t be able to avail the
benefits of the pre-existing policy as the benefits of the policy will
lapse.
The revival of your life insurance
policy provides an option to extend the coverage, as the insurers cannot
decline the revival of your life insurance policy because the option of
revival of lapsed policy is always present in the original policy
document.
As revival of LIC insurance policy is not a prolonged process, one can easily revive the policy online in a quick, simple and hassle free-way.
