Life Insurance Corporation of India (LIC) offers a range of policies designed to secure the financial future of its policyholders. However, it’s not uncommon for policyholders to encounter issues with their policies, such as lapses. Understanding what a lapsed policy is, how it affects you, and the steps you can take to address it is crucial for managing your insurance effectively.
Read moreA lapsed LIC policy occurs when the policyholder fails to pay the premiums within the grace period. Generally, LIC offers a grace period of 15 or 30 days, depending on the policy. The policy becomes lapsed if the premiums are not paid within this period. This means the insurance coverage is suspended, and the policy's benefits are unavailable until revived.
Several factors can lead to a policy lapse, including:
Financial Constraints: Difficulty managing finances can make it challenging to pay premiums regularly.
Forgetfulness: Sometimes, policyholders simply forget to make payments.
Change in Contact Details: Payment reminders might not reach the policyholder if LIC is not updated with new contact details.
Lack of Awareness: Policyholders may be unaware of the premium payment schedule or the consequences of a missed payment.
Loss of Coverage: The primary consequence of a lapsed policy is the loss of insurance coverage. In the event of the policyholder's death or any claim, no benefits will be provided if the policy lapses.
Loss of Benefits: If the policy lapses before the completion of the policy term, any accumulated benefits or bonuses might be forfeited, depending on the policy's terms.
Revival Challenges: While LIC policies can be revived, the process might involve additional conditions and costs, and depending on how long the policy has been lapsed, it may not always be possible.
LIC allows policyholders to revive lapsed policies, but it must be done within a specific period, usually two years from the lapse date. The revival process typically involves:
Payment of Overdue Premiums: All outstanding premiums must be paid.
Payment of Interest: Interest on overdue premiums might be applicable.
Submission of Health Declaration: If the policyholder's health has changed significantly since the policy lapsed, a health declaration might be required.
Additional Documentation: LIC may require additional documents to process the revival.
Set Reminders: Use digital reminders or calendar alerts to keep track of premium payment due dates.
Automatic Payments: Opt for automatic bank debits to ensure timely premium payments.
Regular Updates: Keep LIC informed of any contact details or financial status changes.
Periodic Review: Review your insurance needs and policy status regularly to avoid lapses.
A lapsed LIC policy can disrupt your financial planning and insurance coverage, but understanding the process and taking proactive steps can help you manage it effectively. By staying informed and vigilant, you can ensure that your policy remains active and continues to serve its intended purpose of providing financial security.
LIC Resources
LIC Online Services |
LIC Investment Plans |
LIC Other Plans |
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
++Returns are 10 years returns of Nifty 100 Index benchmark
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
10 Oct 2024
2 min read
The LIC Index Plus Premium and Maturity Calculator is a valuable07 Oct 2024
3 min read
Surrendering the LIC policy is an important aspect of LIC20 Sep 2024
4 min read
When it comes to securing your financial future through life20 Sep 2024
3 min read
When managing your life insurance with the LIC, understanding11 Sep 2024
3 min read
LIC premiums are an important aspect of life insurance policies3 min read
The LIC Online Payment by Policybazaar enables policyholders to pay their insurance premiums online at their3 min read
Since 1956, LIC of India has offered several policies that combine insurance protection with wealth accumulation3 min read
The surrender value of an LIC policy is the amount given to the policyholder if they cancel their policy before4 min read
The LIC maturity value is the amount payable to the policyholders at the end of their policy term. To calculateInsurance
Calculators
Policybazaar Insurance Brokers Private Limited CIN: U74999HR2014PTC053454 Registered Office - Plot No.119, Sector - 44, Gurugram - 122001, Haryana Tel no. : 0124-4218302 Email ID: enquiry@policybazaar.com
Policybazaar is registered as a Composite Broker | Registration No. 742, Registration Code No. IRDA/ DB 797/ 19, Valid till 09/06/2027, License category- Composite Broker
Visitors are hereby informed that their information submitted on the website may be shared with insurers.Product information is authentic and solely based on the information received from the insurers.
© Copyright 2008-2024 policybazaar.com. All Rights Reserved.