Lapsed LIC policy: This LIC campaign will run from January 1 to March 2. Its purpose is to reinstate policyholders whose individual life insurance policies lapsed due to non-payment of premiums on time.
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Lapsed LIC policy: If your LIC life insurance policy has lapsed for some reason and you wish to reactivate it, this news may be useful. The Life Insurance Corporation of India has launched a special revival campaign for such policies, offering relief for a limited period.
This campaign will run from January 1st to March 2nd. Its purpose is to reinstate policyholders whose individual life insurance policies lapsed due to non-payment of premiums on time. In recent years, many families have experienced irregular income, impacting long-term financial planning. In such a scenario, this move by LIC is considered very important.
What are the benefits of this campaign?
As part of this revival drive, LIC has announced a special discount on late fees. Non-linked individual insurance policies eligible for revival can receive a late fee discount of up to 30 percent, subject to a maximum limit of ₹5,000. The relief is even greater for micro insurance policies. Late fees on such policies are being completely waived, making risk coverage affordable again for low-income policyholders.
LIC has also clarified that this facility is only for policies that have lapsed during the premium payment period and whose full policy term has not yet expired. While late fees are being waived, no relaxation will be provided where medical or health-related conditions apply.
This campaign has been launched specifically for those who have been unable to pay their premiums on time due to personal or financial constraints. These may include job loss, medical emergencies, or temporary financial constraints.
What are the benefits?
Reviving a lapsed policy reinstates full life cover. This is crucial for families who rely on the policy for future financial security. Risk coverage typically ends after the policy is discontinued, even if premiums have been paid for several years.
LIC also advises that in many cases, reviving an old policy is preferable to purchasing a new one. Older policies often have premiums based on the age at which the policy was taken out, which is typically lower. Older policies may also have fewer conditions and exclusions than newer policies. This allows for long-term savings and protection, while still maintaining the plan.
LIC also advises policyholders to ensure their policy is eligible before deciding on revival and whether future premium payments fit within their budget. Late fee waivers are available during this campaign, but the responsibility to pay premiums will continue.
This initiative by LIC is an effort to stand with policyholders who want to maintain their family’s financial security and return to insurance cover.
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