Missing an LIC premium payment can be stressful, especially if you’re worried about losing your insurance cover.
But the good news is that a single missed premium does not immediately cancel your policy.
LIC gives policyholders extra time to make the payment, and even if the policy lapses, there is still an option to revive it. Here’s everything you need to know.
LIC Gives You Extra Time to Pay
If you miss your premium due date, LIC provides a grace period to make the payment without any late fee.
Monthly premium plans get a 15-day grace period.
Quarterly, half-yearly, and yearly premium plans get a 30-day grace period.
During this period, your policy remains active. If the insured person dies during the grace period, the nominee is still eligible to receive the claim amount.
When Does an LIC Policy Lapse?
Your policy lapses only if you fail to pay the premium even after the grace period ends.
Once the policy lapses, your life insurance cover stops. This means your family may not receive the claim amount if something happens to you. A long-lapsed policy may also affect bonus benefits and other policy-related advantages.
You Can Revive a Lapsed Policy
A lapsed LIC policy can usually be revived within five years from the date of the first unpaid premium, although this may not apply to every policy.
To revive the policy, you must pay the pending premiums along with the applicable interest and late fee.
In some cases, LIC may also ask for a health declaration or a medical check-up before approving the revival.
How to Revive Your LIC Policy Online
You can revive your policy without visiting an LIC branch. Simply use the official LIC website or the LIC Customer App to complete the process.
LIC also launches Special Revival Campaigns from time to time. During these campaigns, customers may get discounts of up to 30% on late fees.
In many cases, reviving an old policy is more cost-effective than buying a new one, as it helps you continue with your existing benefits and coverage.
