LIC policy revival campaign: If the LIC policy has been discontinued, then LIC has started a campaign to restore it. The company has clarified the stand regarding death claim payment on the closure of the policy.
New Delhi: If you are a policy holder of LIC, but due to some reason your policy has been discontinued, then it can be restarted or reinstated. LIC has said that it is running a special campaign from September 1, under which the discontinued policy can be reactivated.
Life Insurance Corporation of India (LIC) has launched a special drive for revival of individual lapsed policies. LIC celebrated its 67th anniversary on 31st August 2023 and announced the launch of a special campaign, which would be effective from 1st September, 2023.
Revival of lapsed LIC policies
- If your policy has lapsed or lapsed due to non-payment of premiums on time, the terms and conditions of the policy contract are void until you reinstate it.
- Lapsed coverage should be reinstated by paying the accumulated premium along with interest and providing necessary health information.
- Always keep your policy current to guarantee that your family receives the financial protection your policy provides.
- Certain rebates are available depending on the period for which you have paid the premiums except in certain schemes of claim concession.
What is a lapse policy?
Lapse policy means the insurance ceases to exist if the premium is not paid within the stipulated number of days. A lapsed policy can be reinstated as per the terms of the plan on submission of evidence of continued insurability to LIC and payment of all premium dues along with interest at the rate prescribed from time to time.
However, LIC reserves the right to reactivate or not reactivate a canceled policy. Reinstatement of the discontinued policy will be effective only if it is approved by LIC.
LIC celebrates its remarkable -67th Anniversary with outstanding performance.#LICFoundationDay #67YearsStrong #SecuringFutures pic.twitter.com/qTbCyrijSJ
— LIC India Forever (@LICIndiaForever) September 1, 2023
How will the death claim be paid during the lapsed period?
According to the LIC website if the policyholder has paid the premium for at least 3 complete years and has subsequently stopped paying the premium, and the death of the insured within six months from the due date of the first unpaid premium. In case the policy amount will be paid in full after deduction. The money along with interest on the premiums not paid till the date of death will be given to the nominee of the policy holder.
If the policyholder has paid the premium for at least 5 full years and subsequently stops paying the premium and the life assured dies within 12 months from the due date of the first unpaid premium, the policy will be lapse. Full amount will be deducted and paid.
