The Life Insurance Corporation Of India (LIC), amidst the ongoing pandemic, has launched a campaign to help people revive their policy if it has lapsed due to some reason or the other.
For the unaware, policy lapse, in simple terms, is the policy for which all benefits to the policyholder cease and are terminated due to nonpayment of the premium amount.
The new campaign by LIC will continue till March 6, 2021, under some conditions. The company also informed that more than 1,500 of its office will provide policy revival service to its customers.
“Under this Special Revival Campaign, policies of specific eligible plans can be revived within five years from the date of the first unpaid premium subject to terms and conditions,” the company said.
What are the benefits of LIC policy?
The LIC has said that the Special Revival Campaign is a good opportunity for anyone “who could not pay premiums due to unavoidable circumstances and their policies lapsed”.
As per a report by Jagran, LIC added that people who seek revival will get a 20% late fee concession or Rs 2,000 for revival while 25 per cent concession for annual premiums between Rs 1 lakh and Rs 3 lakh.
How can you revive your lapsed policy?
Pure rick cover policies – If a policyholder stops paying the premium amount only then pure rick cover policies lapse. These policies can be revived when the policyholder let go of the premium and assured benefits.
Traditional plans – If you haven’t paid the policy premium for 2-3 years and the same has lapsed, then it can only be revived if the company launches a special campaign.
Unit-linked insurance policies – They can be revived from the date you first missed paying the premium till the next two years.