How to Pay LIC Premium Online after the Due Date?

LIC understands the troubles of customers in case they miss the payment of a LIC policy within the grace period making the policy lapse. In such cases, LIC offers the option of paying the late fee charges and the unpaid premiums to revive the policy via online mode. This way, LIC wishes to enhance customer credibility. Let us understand the various ways of LIC premium payment in this post.

Grace Period for Paying LIC Premiums

A policyholder may not be able to pay a premium payment for several reasons. LIC understands such problems of customers and hence offers a grace period for LIC premium payment beyond the due date.

Generally, a grace period of 30 days is provided by LIC policies to its customers who pay their premiums on a quarterly, half-yearly, and yearly basis. However, for premiums paid on a monthly basis, the grace period is lowered to 15 days beyond the LIC premium payment due date.

What Late Fee Charges are Levied Under LIC Policies?

If a policyholder misses a premium payment for a LIC policy and also fails to make the premium payment within the grace period, the policy, in that case, gets lapsed. So, the policyholder has to renew the policy to stay covered. For this, the customer has to pay the unpaid premiums and late fee charges.

The time limit to renew a lapsed LIC policy ranges between 6 months to 5 years from the date of the first unpaid premium. Late fee charges generally depend on different policies and can be 6%, 7.50%, or 9.50%.

Late fee is greater in high-risk policies as compared to the low-risk ones, and it accumulates with the increasing unpaid premium duration. Below are some LIC premium late fee charge conditions:

• 45 days is counted as 1st month
• 45 to 75 days is counted as 2nd month, and it goes on

How to Make LIC Online Payment of Premium After Due Date?

An insurance policy, including the LIC policy, lapses when the insured fails to pay the due premium within the stipulated time period. This includes the grace period as well. However, in case of a policy lapse, the insured can revive it easily by paying the unpaid premium and late fee charges.

To pay a late fee, LIC customers can use two online processes as mentioned below:

1. Through Customer Portal:

Steps for Registered Users – 

1. Go to the customer portal of the insurance company

2. Go to ‘Registered User’ and click on it

3. Fill in the required fields, such as user ID, password, and DOB, to enter the site

4. Once you log in, check the ‘Policies’ section

5. Choose the ‘Online Premium Payment’ button and click on it

6. Now, choose the ‘Renew/Revival’ option as per your requirement

7. Choose the payment mode and make the payment

8. You will receive the receipt of payment in your registered email ID

9. Download the receipt

Steps for New Users – 

For new users who are in the execution phase and who do not possess an online customer account may want to renew the policy online. In that case, they can follow the below steps to get it done.

1. Go to the official customer portal of the LIC

2. Look for the ‘New Users’ option and click on it

3. Now, enter the details asked for, such as policy number, registered email ID, DOB, gender, and phone number

4. Click on the ‘Proceed’ button

5. Once registration is done, click on ‘Policies’

6. You can see the status of the lapsed LIC plan here

7. Now, click on the option of ‘Online Payment’

8. Select the desired option of ‘Renewal or Revival’

9. Make the payment

10. You will receive the payment details in your email ID

11. Take a printout of the receipt and keep it for future reference

2. Direct Payment:

For direct payment, the customer doesn’t require an online account in the portal. You simply need to follow the below steps:

• Visit LIC’s official portal
• Go to the ‘Online Premium Payment’ option that you can see on the left side of the home page
• Click on the ‘Pay Direct’ button
• Choose the ‘Renewal or Revival’ option as required
• Now, click on the ‘Proceed’ button
• You would be required to fill in your credentials in this step, such as policy number, contact number, DOB, and registered email ID
• Now, enter the details of your premium
• Choose the payment mode
• Download the e-receipt that you will receive on your registered email

Check LIC Policy Due Date and Revival Quotation Online Before Renew/Revival 

Before a customer pays the unpaid premiums to revive a policy, it is better to double-check the due date of the lapsed policy and learn about the revival quotation, which is the amount that needs to be paid for a policy revival.

You can check the revival quotation by logging in to your LIC account as per the steps mentioned above. New customers must get registered first to access the account online and check the due date and revival quotation. This will make it easy for them to renew or revive the lapsed policy.

What are the Available Revival Options of LIC Policy?

LIC offers five ways through which the policyholder can pay the unpaid premiums of a policy. These options are introduced for the ease of LIC customers to help them revive their lapsed policies. At times people couldn’t pay the LIC premiums within the required time for various genuine reasons. The option of reviving LIC schemes would aid customers to regain the lost coverage.

Here are the five options as mentioned below:

1. Ordinary Revival Scheme:

Under this scheme, the policyholders can pay the charges of the unpaid premium together with the interest of the late fee. The person might have to submit Form 680 as well as a medical certificate for the same.

2. Revival through LIC Installment:

This scheme suits policyholders who can’t pay the unpaid premiums as well as the interest charged as a lump sum one-time payment. These customers are offered the option to pay the revival amount in instalments depending on the customer’s convenience.

However, there are certain conditions under this scheme, such as:

• If the customer chooses the monthly payment mode, they need to pay the premiums for six months in one go
• If they choose the quarterly mode of payment, they have to pay the charges for two-quarters
• In the case of half-yearly payment, the customer has to pay the charges for a semi-annual term, and
• In the case of a yearly mode of payment, the customer has to clear one-half of the levied charges as an annual payment

The remaining balance can be paid by the customer on an instalment basis in the next two years, together with the regular premiums of the policy.

3. Revival Scheme with Loan Options: 

Under this scheme, the policyholders can avail of loan options to revive a policy. However, this is possible if the customer is assigned a surrender value during the revival period. The loan amount depends on the premium charges paid until the revival date. In case of an insufficient loan amount to pay the complete unpaid charges, the customer has to pay the excess amount. And if the loan amount exceeds the outstanding charges, the extra amount is paid to the customer.

4. Revival Scheme with Survival Benefit:

This is especially effective under the money-back policies where the insured receives survival benefits on policy maturity. In this case, the survival amount is offered to the customer after a specific time period, which they can use to revive the LIC policy. However, this option is available only if the revival is processed after receiving the survival benefit.

5. Special Revival Scheme:

Under this scheme, the customer would require documents like a medical certificate, DGH, and other papers, just like in the Ordinary Revival Scheme. Here, the policy’s start date is shifted to a date just before the revival date so that the policy does not lapse.

Below are some conditions under this scheme:

• This option is available only once in the complete term of the policy
• It is available within three years (max) of the policy lapse
• There must be no surrender value offered under the policy