LIC Policy Revival Online – 5 Schemes to Revive Lapsed LIC Insurance Policy Online in 2024

As humans, we are bound to forget things. Forgetting to pay your LIC policy premium is one such thing that might happen to policyholders for any reason. If you have missed a premium due date causing your LIC policy to lapse, you have the option to revive it through different LIC schemes. Read the post till the end to know them in detail.

What is the Meaning of LIC Policy Revival Online?

As stated above, if the policyholder fails to renew the purchased LIC insurance policy on time, the policy lapses, meaning it becomes inactive. In other words, the policyholder would no longer be able to enjoy the insurance benefits under the plan because it has now lapsed. The only option left with the policyholder in this case is to revive the lapsed policy.

Now in case the policyholder was not able to pay the premium amount towards maintenance of the policy on time or within the granted grace period by the insurer, the latter would then offer a two-year revival period to the insured. Within this period, the insured is required to initiate the process for the LIC policy revival of lapsed policy.

5 Schemes for Revive Lapsed LIC Insurance

In case of insurance policy lapse, the policyholder is given two years’ time to revive the lapsed policy. LIC provides a number of schemes to its policyholders for initiating the LIC policy revival process. Here are 5 schemes that an insured can avail of to revive their lapsed plan:

Name of the Scheme Key Features of Revival

Conditions for Policyholders Under the Scheme

Survival Benefit cum Revival Scheme Used for renewal of LIC money-back plans

Submission of Survival Benefit Discharge form with self-content of policyholder; revival process under the scheme as per T&C of LIC + loan application

Special Revival Scheme Change of intimation date for the policyholder; payment of single premium as per age at the time of policy revival

Submission of written request by policyholder; revival possible once once during policy term; original commencement date can be changed up to max 2 years

Loan cum Revival Scheme Premium arrears recovered from the loan amount available as per policy terms&conditions

After adjustment of premium and interest, the balance is returned to the life assured; in case loan amount is insufficient to cover premium arrears, difference is paid by the policyholder

Installment Revival Scheme Designed for policyholders who are unable to pay premium at one time and wish to opt for installments

Survival benefit should not be due during the installment period of policy revival; no outstanding loan under the plan at revival time; N/A for policies issued under Salary Saving Schemes

Ordinary Revival Scheme All unpaid premiums including interests to be paid by the policyholder in one go

LIC may ask the policyholder to submit some medical reports under Form 680 for policy revival

 

When is LIC Lapsed Policy Refund Possible?

Refund of lapsed policy is available under the various schemes offered by LIC, which are detailed in the above table. The policyholder is entitled to get their money back from the lapsed insurance policy by reviving the plan under any one of the above-mentioned schemes.

What is the LIC Renewal Payment for Lapsed Policy?

The insurer is entitled to charge a penalty or fine from the policyholder for the policy lapse during its revival process. The amount charged may depend on the sum assured under the policy as well as the time period after the lapse of the policy.

However, LIC also offers the policyholders several discounts and fee exemptions on the penalties charged for policy revival. These exemptions completely depend on LIC’s terms and conditions released from time to time.

Note that the LIC policy revival online payment can be made on the insurer’s portal after duly filling out and signing the LIC revival online form by the policyholder.

What do you mean by Surrender of LIC Policy?

Surrender of an LIC policy means opting out of the plan before the maturity of the plan.  The value/money received at the time of surrendering a policy is called the surrender value of the LIC policy. Generally, the surrender value is calculated and is eligible only after completing 3 years of LIC policy or 3 years of paying premiums for a policy. 

However, surrendering an LIC policy is not encouraged because the benefit received in terms of the surrender value is always low. Further, in case a policyholder surrenders the policy before the completion of 3 years, he/she will not receive any surrender value.  

How is the LIC Policy Lapsed Without Surrender Value?

If the policyholder wishes to opt-out of a plan before it matures, it is known as policy surrender. In this case, the insurer provides an amount to the policyholder which is called LIC policy surrender value.

Under normal circumstances, the surrender value of a policy is computed by LIC only after regular premium payment by the policyholder for 3 years running. In case the policyholder chooses to surrender the plan before a term of 3 years, the insurer (LIC) is not liable to pay any surrender value to the insured.

This means that in case the policyholder failed to pay regular premium amount to LIC and the policy lapsed before the term of 3 years, it would be considered lapsed without surrender value.

Conclusion

5 Schemes to Revive Lapsed LIC Insurance Policy Online 2024

If the policy has lapsed 5 years from the commencement date, the policyholder would be required to pay all the unpaid premium amounts to LIC along with their respective interests in one go. In some cases, the insurer might also ask the policyholder to submit medical reports under Form 680 for policy revival.

Yes, your LIC lapsed policy can be revived anytime within 5 years from the date the first premium was unpaid.

Yes, policyholders can revive their lapsed policy online on the official website of LIC. The online revival process is relatively faster and hassle-free. 

In case your LIC policy has lapsed, it would no longer be able to provide financial coverage to the policyholder. All the benefits attached to the plan would fail to serve the insured, for instance, death benefit to the beneficiary of the insured, maturity benefit, and the like.

To activate a lapsed LIC policy, you need to pay the accumulated premiums including the interest, and provide the required medical certificate or details.

You can pay the premium of an expired LIC policy online or offline. You can visit the official website of the insurer or the nearest branch to get the payment done.

Yes, you can check the status of a lapsed LIC policy by visiting the official portal of the insurer to find out the premium due and other details.

Author Bio

Paybima Team

Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

Choose from India’s top insurers

Latest Post

Choosing the best health insurance for parents as they grow older and become more prone to diseases is important. With medical costs on the rise in India, properly insuring your parents can help alleviate some of the financial strain. This will ease the burden of unforeseen medical emergencies. 

However, choosing a good plan can be a tricky matter. There are many kinds of insurance policies available, you should consider their health situation and future needs and know about insurance policies in general. This guide explains what crucial points to take into account (including renewal processes, age, and health conditions ) and helps bring clarity to make educated decisions. 

See nowSee now

Even though motherhood is one of the most beautiful things in a woman’s life, it is also one of the most financially burdensome phases. Maternity insurance entails all forms of checkups, delivery and postnatal, and as such expenses can easily skyrocket.  

Therefore, it becomes a worthy affair for expecting parents to incur the cost. Maternity insurance covers several expenses that are associated with pregnancy and assists in reducing the financial stress and offer assurance during this important time. 

See nowSee now

For a homeowner, insurance acts as an essential part wherein the protection of their assets is ensured. In this regard, appraisals in real estate work in tune with something called the 80% rule that is used for selecting a policy and at a rate. Loss can become an absolute if one cannot fathom what homeowner insurance is. This blog will discuss the range of the 80% rule and how it affects your premium. 

See nowSee now

See nowSee now

For policyholders, medical insurance has been a contentious issue, especially on account of claim rejections or delays. However, the insurance industry is increasingly worried about the rise of tech-savvy fraud, where fraudulent medical claims are made using forged documents and sophisticated digital techniques.

See nowSee now