From February 7 to March 25, LIC is giving an opportunity to reactivate the lapsed insurance policy. Should you get your LIC’s lapse insurance policy activated? Understand the screws of this plan of LIC.
If you have not been able to pay your LIC insurance premium due to financial constraints during Covid ( Coronavirus ), then LIC has come up with Lapse Policy Revival Scheme. From 7 February to 25 March, LIC is giving policyholders a chance to reactivate the lapsed insurance policy. In which the fee for reactivation of the insurance policy is being waived . The policy made can also be activated. But keep in mind that this discount is not available on term plans and high risk plans.
Apart from this, no relief will be given in the medical check-up required for reactivation of the policy. But no late fee will be charged for reviving health and micro insurance plans.
Know Terms and Conditions
As per the IRDAI guidelines, an insurance policy lapses when the payment is not made during the grace period. The grace period for payment of annual, half-yearly and quarterly premiums is 30 days.
For monthly payments, the grace period is 15 days. To revive a lapsed policy, the accumulated premium along with interest has to be paid. Along with this, late fee will attract GST as per rules.
To revive a lapsed LIC policy under this special offer, policyholders can contact their agents.
One can download the revival form from the official website of LIC. Fill the form along with the pending premium amount along with the late fee and submit it to the LIC office.
Health insurance with a premium of 1 lakh will get a discount of 20 percent i.e. maximum 2000 rupees on late fee and 30 percent or maximum 3000 rupees will be given in the policy with 3 lakh premium.
Along with this, LIC is also working on a plan to give 10 percent shares at a discount rate to its policyholders in the IPO. That is, lakhs of policy holders of LIC can get a chance to get shares cheaply. LIC is considering to reserve a part in this for its employees as well.
Should you get your lapsed policy revived? If you have paid only a couple of premiums and have a nominal amount and your needs are not being covered by the existing policy, then it would not be wise to revive it. Before reviving a lapsed policy, assess whether you need this policy or not?
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