Revival Of Lapsed LIC Policy: How To Get Your Money Back

Life Insurance Corporation of India (LIC) is a public sector enterprise that has created a mark for itself in the insurance marketplace. Established over 100 years ago, LIC is one of the most prominent insurance companies in India that has an unparalleled trust of the customers throughout the country.

Read more
Best Investment Options
  • Save upto ₹46,800 in tax under Sec 80C

  • Inbuilt Life Cover

  • Tax Free Returns Unlike FD

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Get Guaranteed returns along with life cover
invest in 100% Guaranteed Return Plans Tax benefits under sec 80C & No Tax on returns*
View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans", you agree to our Privacy Policy and Terms of Use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp

LIC specializes in serving different insurance plans to their customers depending on the need such as investment plans, saving plans, health plans, child plans, and many more.

In this article, you will get to know how you can revive your lapsed LIC Insurance Policy and how you can get your money back.

How To Revive Lapsed LIC Policies

If your policy has lapsed due to non-payment of premiums within the due date, the terms and conditions of the policy contract are rendered void, till you revive your policy.

A lapsed policy has to be revived by payment of the accumulated premiums with interest as well as giving the health requirements as required. One can easily get their money back from lapsed LIC policy by reviving it.

How To Get Money Back From Lapsed LIC Policy?

One can get money-back from lapsed LIC policy only by reviving it. The revival of LIC Insurance policy can be done in 5 ways:

  1. Ordinary Revival

    The policyholder can revive their lapsed life insurance policy by paying all the unpaid premiums including the interests altogether.

    However, sometimes the policyholder is asked for some medical reports under Form 680 for the revival of the LIC policy.

  2. Special Revival

    Under special revival, the intimation date of the policyholder can be change and the insured shall pay only one due premium according to their age during revival.

    A special revival scheme can be availed if the insured person is unable to pay the premium in a lump sum. Sometimes the policyholder is asked for some medical reports under Form 680 for the revival of the LIC policy. Conditions under the special revival of LIC policy are:

    • It can be used only once in the entire tenure of the policy
    • Insured can avail of the special revival offer only within 3 years of the lapsed policy
    • Surrender value is not acquired under the policy. Therefore, the special revival option can be implemented within 3 years of the commencement date of the policy
  3. Installment Revival

    An installment revival scheme is especially for those policyholders who are unable to pay premiums of their LIC policy in a single go and wishes to pay in installments. Under this scheme, the policy can be revived by paying the amount in the following ways.

    • In yearly premium mode, half of the yearly premium needs to be paid by the policyholder
    • In half-yearly premium mode, one half of the yearly premium needs to be paid by the policyholder
    • In quarterly premium mode, 2 quarterly payment needs to be paid by the policyholder
    • In monthly premium mode, a regular 6 monthly premium needs to be paid by the policyholder

    The rest of the due premium is to be paid by the insured in equal installments within 2 years along with the regular premium as per the tenure of the policy.

  4. Survival Benefits Cum-Revival Scheme

    If the survival benefit due date comes earlier than the inline for renewal date, then the insured person can avail survival benefit to revive the policy.

    However, the policyholder will have to pay the excess amount in case the revival amount is more than the survival benefit. In the same way, if the revival amount is less than the survival benefit, then the rest of the remaining amount is paid back to the insured person.

  5. Loan Cum Revival Scheme

    Under this scheme, the policy can be revived by the policyholder by taking a loan if, on the date of revival, the policy acquires a surrender value.

    The insured person will have to pay the additional amount in case there is any deficit in the revival amount. If the loan amount is more than the revival amount than the extra amount will be paid to the insured person.

    The lapsed policy is different from the surrendering policy. Under surrendering of policy, the policyholder himself opt-out of the policy, whereas policy lapses due to many other reasons like not having money to pay for premiums.

What Is Surrender Of LIC Policy?

When you opt-out of a policy before its maturity, then it is called surrendering of the policy, and the amount that you receive at the time is LIC policy surrender value. Normally, with a regular policy, the LIC policy surrender value can be calculated only after the policyholder has paid the premiums continuously for 3 years. However, surrender of policy is not recommended since the LIC surrender value will always be subsequently low. Also in the case of surrender before 3 years, no surrender value is offered.


The revival of your LIC insurance policy provides an option to extend the coverage, as the insurers cannot decline the revival of your life insurance policy because the option of the revival of a lapsed policy is always present in the original policy document.

One can easily get their money back from lapsed LIC policy by reviving it.

Written By: PolicyBazaar - Updated: 02 September 2021
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Sign up for newsletter
Sign up our newsletter and get email about LIC India.

Investment plans articles

Recent Articles
Popular Articles
How to Invest Money

25 Nov 2021

The investment made today is the asset created for tomorrow...
Read more
Gold Bonds in India for NRIs

24 Nov 2021

Gold is an asset whose value increases over time that may be...
Read more
PIS Account for NRI

24 Nov 2021

Non-Resident Indians can operate in the recognized stock...
Read more
Process to Fill SSY Form in Post Office?

20 Nov 2021

The Sukanya Samriddhi Yojana (SSY) is a post office scheme...
Read more
How to Fill a Post Office Savings Bank Form?

20 Nov 2021

Post Office Savings Bank Account is a deposit scheme with easy...
Read more
Best LIC Policies For Investment in 2022
When it comes to purchasing a life insurance plan, 'LIC policies' are the most popular choice for customers. LIC...
Read more
Short Term Investments Options
Short-term investments can be described as temporary investments or marketable securities, which can be easily...
Read more
Post Office Monthly Income Scheme - MIS Interest Rate 2022
Are you looking for an investment avenue which is safe and secure, earns substantial returns with a short locking...
Read more
SBI Life Insurance Plans in India
SBI Life Insurance, a joint venture between State Bank of India (SBI) and BNP Paribas Assurance, provides...
Read more
State Bank Of India Investment Plans
Monthly investments plan is a popular investment options for individuals who wants to gain a profitable investment...
Read more
Download the Policybazaar app
to manage all your insurance needs.