LIC Policy Revival in Ahmedabad

What happens when a policy lapses

Nothing is lost immediately, but three things change the day a premium goes unpaid beyond the grace period:

• ·The life cover stops. If the life assured dies while lapsed, the nominee receives nothing beyond the paid-up value, if any.
• ·The policy stops earning bonuses from that point, which reduces the final maturity amount.
• ·If at least two full years of premiums were paid, the policy usually acquires a paid-up value — a reduced sum assured payable at maturity, with no further premiums due.

How revival works, step by step

• 1Read the policy schedule. It gives the plan number, premium paying term, due date of the first unpaid premium and the sum assured.
• 2Confirm the revival window. Most LIC plans allow revival within five years of the first unpaid premium, and always before maturity. Some plans are shorter — the schedule and the branch decide.
• 3Get the exact arrears. LIC quotes the unpaid premiums plus interest at its prescribed rate for the period. Nobody can give you this figure accurately without the policy number.
• 4Complete the health declaration. A lapse of more than six months usually needs a declaration of good health; a longer lapse or an older age can need a medical examination at LIC’s panel doctor.
• 5Submit at the servicing branch and pay. The policy is reinstated with its original date, bonuses preserved for the revival period, and the nominee intact.

Documents usually needed

• ·The original policy document, or a duplicate application if it is lost
• ·Revival application form, signed by the policyholder
• ·Declaration of health, and medical reports if the branch asks for them
• ·Age proof, if it was never submitted or is incomplete
• ·PAN and Aadhaar for KYC, and bank details for NACH mandate if premiums are to be auto-debited

When revival is not the right answer

An honest advisor will tell you when to stop. These are the cases worth examining before paying arrears:

• ·The arrears plus interest approach the surrender value — surrendering or taking a paid-up value may leave you in a similar position with more flexibility.
• ·The life assured is now uninsurable and the branch requires medicals that will not be accepted — a fresh proposal is unlikely to help either, so the paid-up value becomes the realistic outcome.
• ·The policy is a pure term plan with no surrender value. Reviving it restores cover, but a new term policy at a younger-equivalent price may be impossible at the current age, so revival is usually still worth it.