Mumbai: If your life insurance policy with Life Insurance Corporation of India (LIC) has stopped because premiums were not paid on time, there is good news. LIC has started a special revival drive to help policyholders restart their lapsed policies with financial relief. This campaign is available for a limited period only.
The revival drive will run from January 1 to March 2. It is meant for people whose individual life insurance policies became inactive because they missed premium payments during the policy term.
Why LIC Took This Step?
In recent years, many families have faced financial stress due to job loss, medical emergencies, or irregular income. Because of this, long-term financial planning has suffered. LIC’s new initiative aims to bring such policyholders back under insurance protection and restore their life cover.
Discounts on Late Fees Explained
Under this revival campaign, LIC is offering up to 30 percent discount on late fees for eligible non-linked individual life insurance policies. However, the maximum discount is capped at Rs 5,000.
For micro insurance policies, the benefit is even bigger. LIC is fully waiving late fees, making it easier for low-income policyholders to restart their insurance cover at a lower cost.
Who Can Use This Facility?
The revival benefit applies only to policies that lapsed during the premium-paying period and whose total policy term is not yet over. While late fees are being relaxed, LIC has clearly stated that medical or health-related conditions, if applicable, will remain unchanged.
Why Reviving an Old Policy Makes Sense?
Reviving a lapsed policy brings back the full life cover, which is crucial for family security. Often, restarting an old policy is better than buying a new one because premiums are usually lower, based on the age at which the policy was first taken. Older policies may also have fewer conditions and exclusions.
Important Advice for Policyholders
LIC advises customers to first check whether their policy is eligible for revival. It is also important to ensure that future premium payments fit comfortably into the household budget, as premiums will need to be paid regularly going forward.
