The Life Insurance Corporation of India (LIC) has been one of the most reliable and efficient insurance providers among Indian citizens. Since its establishment, the customers trust the company, and it also has the largest market share among the insurance segment. Under LIC policies, many customers enjoy admirable financial coverage and continue to lead a stress-free life.Read more
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The company has acknowledged the troubles an individual goes through while paying premium charges offline and introduced a more user-friendly and digital method of making the LIC premium payments.
Suppose an individual fails to pay the premium charges within the given timeline or the grace period, then the policy lapses. But an individual can efficiently restore the policy by paying the due premiums along with minimal late fee charges. The introduction of the online method has efficiently increased the credibility of the services provided by the company.
There are many reasons for not being able to pay the premium charges within the due date. The company understands the various reasons for the inability and provides a grace period for all the LIC policies’ premium payments.
The policyholders get the option of choosing the term of premium payments, which includes annually, half-yearly, quarterly and monthly, and the due date is fixed accordingly. If an individual fails to pay the premium further during the grace period, then the policy lapses and the financial coverage. In the grace period, the financial coverage subsists, and the individual gets a chance to pay the premium charges after the due date.
The grace period allotted under LIC policies is 30 days if the policyholder makes the LIC premium payments annually, half-yearly and quarterly. If a policyholder pays premium charges monthly, then the grace period reduces 15 days from the last due date.
If a policyholder is unable to pay the premium charges within the extended timeline that is the grace period, then the unpaid policy will get lapsed. The individual will need to renew the policy if they want to attain financial coverage by the policy. To continue the policy, the customer needs to pay the unpaid premium charges and late fee charges.
The policyholder can renew their policy within a minimum of 6 months to a maximum of 5 years starting from the first unpaid due date. According to the different policies, the late fee charges rate includes 6%, 7.50%, and 9.50%. The high-risk policies have more significant late fee charges, and low-risk policies have lesser late fee charges. The charges increase in terms of increasing months the policy remains unpaid. Some conditions concerning late fee charges are:
Before paying the premium charges, the first step is to double-check the due date of the policy for which an individual is about to pay and get the knowledge about the revival quotation, i.e., the amount required to be paid to revive the policy.
To check the due date and Revival Quotation, an individual must log in to their respective accounts in the official customer portal of the insurance company. The steps to logging in to the account are given further in the article. If an individual is new to online services, they need to register themselves with the required credentials to access the online services.
After successfully logging in to the online account, the customer can readily check the due date, revival quotation of the lapsed policy, policy details, grace period, late fee interests, and much more available under the section of online services. After checking the due date and revival amount, the customers can easily renew their policy at their convenience.
If an individual fails to pay their due premium charges within the required timeline, which includes the grace period, the LIC policy lapses. But the individual can easily pay their unpaid premium charges along with late fee charges and can easily revive the lapsed policy. There are two methods in which a LIC policyholder can make their late premium payments within the online process. The methods are mentioned below, including steps to follow for making the payments:
Suppose an individual is new in executing the online services and does not have an online account in the customer portal and wants to renew their policy online. In that case, the following steps will be helpful:
This process does not require any online registration to an account in the customer portal.
For the convenience of LIC policyholders, the company has introduced five ways of paying the unpaid premium charges and aids in reviving the lapsed policy. For various reasons, the customers cannot pay the premium charges within the given timeline and options of revival schemes help the customers access the financial coverage. The options are:
This revival scheme offers the chance to the policyholders of paying the unpaid premium charges along with late fee interests. Under this scheme, the policyholders may be asked to submit Form no. 680 and medical certificate is required to check the health of the life assured/policyholder.
This scheme can be utilized by the policyholders who are unable to pay the premium charges along with interests at one go. The customers can pay the premium charges for revival in instalments as per their convenience. Some conditions under this scheme are:
The balance should be paid in instalments for the upcoming two years, along with the regular premium charges.
The scheme allows the policyholders to access loan options to revive the policy if a surrender value is assigned during the revival. The premium charges, which are paid till the date of revival, are checked in order to decide the loan amount. If the loan amount is not sufficient for premium charges, then the excess has to be paid by the customers. In case of excess, the balance will be delivered to the customers.
In money-back policies, the policyholders get a survival benefit amount upon maturity. The amount is paid to the policyholders after a specific time span. The clients can easily use this survival benefit in order to revive the policy. But this scheme is only applicable if the revival is processed after possession of survival benefit.
In this scheme, the date of commencement can be shifted to a term where the relevant policy does not lapse just before the date of revival. A medical certificate, DGH or other documents may be required in this scheme, just as the Ordinary Revival Scheme. The conditions under the revival scheme are:
LIC has been maintaining its high credibility and performance in the customer services domain. The insurance company has been acknowledging the difficulties of its customers. To avoid the penalties, it is recommended to regularly pay the premiums or avail of the different payment benefits that the respective policies offer. However, the revival process under LIC is not a prolonged method, and the customers can effortlessly restore their lapsed policy in a tech-abled and hassle-free way.