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

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5 min read

Updated on Dec 20, 2023

Missed to renew your LIC insurance policy? Here are 5 easy schemes to avail for reviving your lapsed policy online from the comfort of your home.

When you purchase a LIC policy, it is necessary to ensure that the policy remains active throughout its specific term. This is possible by paying the premium towards the policy on time, at regular intervals, as may be specified by the insurer during the time of policy purchase. In case you fail to make regular premium payments on time, your LIC insurance policy will lapse. This means that with a lapsed policy, you wouldn’t be able to enjoy its protection benefits anymore. In case your policy lapses, the only solution then is to revive it. Here we understand revive meaning and what it means in the context of a LIC insurance policy.

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.

Read More: Steps to Revive a Lapsed Life Insurance 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

Also Read: How to surrender LIC policy online

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.

Also Read: LIC plan – 5 years double money

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.

Also Read: LIC surrender value calculator

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Conclusion

Revival of lapsed LIC policy is always recommended since it allows the possibility to the insured to extend the policy coverage. Also, the option to revive lapsed policy is always mentioned in the original policy purchased. Also, by reviving the policy, the policyholder can get their money back from the plan.

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FAQs: 5 Schemes to Revive Lapsed LIC Insurance Policy Online 2024

  How can I revive my lapsed LIC policy after 5 years?

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.

Can I revive my LIC policy after 7 years?

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

Can LIC policy be revived online?

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

What happens to a lapsed life insurance policy?

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.

What are the disadvantages of reinstating a lapsed life insurance policy?

There are a number of disadvantages for the policyholder when they choose to revive their lapsed insurance plan. They would need to pay all the missed premium amounts altogether in a lump sum. This can be quite a huge amount sometimes. Besides this, the insured may need to pay a heavy penalty to the insurer, depending on the latter’s terms and conditions.

How to activate a lapsed LIC policy?

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

How can I pay the premium of an expired LIC policy?

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.

Is it possible to check the status of a lapsed LIC policy?

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.

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Nov 25, 2022
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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.

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