There can be an instance where you miss out on servicing premium payment towards an insurance policy either by mistake or deliberately and if later you wish to continue this lapsed policy, there is recourse available to you as its reinstatement or revival. However, on a case on case basis, insurers should allow two years time frame for reviving the lapsed policy.

For different insurance policies, the conditions on which the policy lapses differ as in the ULIPs the case is entirely different from conventional policies. In ULIPs the policy remains in force if the premium payments are made until the lock-in period of 5 years while in case of endowment and other money back policy, all the benefits remain due to the policyholder until the premiums are paid for it till the policy acquires a paid-up status.

In a term plan however the benefits as well as the entire premium paid towards the policy is forfeited in case the policy premium is not paid. Policy revival All accumulated premium with interest has to be paid to revive a lapsed policy. And if required a certificate verifying your good health condition has to be attached. Revival is a fresh contract with the insurer and if insurer feels it can impose fresh terms and conditions.

There are cases or schemes under which the following can be revived in case of LIC:

i) Ordinary revival: If the revival is being made within six months from the first unpaid premium due date then no health declaration is required and simple premium and interest payment towards the policy reinstates the policy.

ii) Revival on non-medical basis: In this case the amount pending for revival against the policy should not exceed the non-medical assurance of the life assured

iii) On medical basis: The medical requirements in the case of revival on medical case would solely depend on the amount to be revived.

There are other schemes also basis which the revival of an insurance policy can be effected and they include:

1. Special Revival Scheme

2. Revival by Installment

3. Loan cum revival

4. Survival benefit-cum-revival

Further it is to be noted that ease of policy renewal depends on the time that has passed since the lapse of the policy. Online policy reinstatement is also allowed in case the time gap from the first unpaid premium does not exceeds six months. The insured can simply produce a declaration in relation to good health and get his or her policy reinstated or revived online.

Also, depending on the age and sum assured, the conditions per se medical checkups will become applicable.

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