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What is the Late Payment Charge for a LIC Premium?

If you do not pay the premium of your LIC policy on time or within the provided grace period, then your policy lapses. However, you can revive your lapsed policy within policy term subject to the formalities of revival that should be observed.

You can revive your LIC policy by paying the premiums with interest within 6 months starting from the due date of the 1st unpaid premium. The table of interest that you have to pay for delayed LIC premium payment is given below:

Months (Delayed)

Late Fee for 1 Re  per Premium




1st Month




2nd Month




3rd Month




4th Month




5th Month




6th Month




 Note: To charge interest, the LIC of India considers the following points:

  • Up to 45 days as 1 month
  • And from 45 days to 75 days it considers as 2 months and this continues

The Revival Options of LIC Policy

When you do not pay the premium for your LIC policy on time or within its grace period, it lapses. However, if you want to revive this policy, then you have to do it within five years from the first unpaid premium’s date. The LIC of India offers 5 different schemes under which you can easily revive your policy:

  • Ordinary Scheme of Revival: As per this scheme, the arrears of all the unpaid LIC policy premiums must be paid with interest. In addition to this, you have to provide ‘Declaration of Good Health’ under form number 680 and medical certificate, if needed.
  • Special Scheme of Revival: If you are unable to pay all the arrears, then you can opt for this scheme. As per this scheme, the Date of Commencement (DOC) is shifted in a way that the policy does not lapse just before the revival date. Other requirements like medical certificate, DGH, or whichever needed as needed in the ordinary scheme of revival. However, you should meet the following conditions in order to avail the benefits of this scheme:
    • The revival must be performed within three years of the policy lapse.
    • The policy should not have any kind of surrender value (S.V).
    • This scheme is allowed only once in any policy term.
  • Revival through the Method of Installment: If the policy is unable to pay the arrears all together in one lump sum or if there are not any chances of policy revival in special revival scheme, then you can utilize the installment revival scheme. According to this scheme, you have to pay immediately on the revival date:
    • If the selected mode is monthly, then six monthly premiums must be paid.
    • If the mode is quarterly, then two quarterly premiums.
    • If the selected mode is half-yearly, then one half-yearly premium.
    • If the selected mode is yearly, then yearly premium’s half.

Revival amount’s balance should be paid in installments in the time of the next two years with the normal amount of premium.

  • Loan as well as Revival Scheme: If the LIC policy acquires surrender value on the revival date, then you can revive the policy by taking a loan against the policy. The loan amount is calculated by treating the premium that is paid until the revival date. If there is any shortfall in the revival, then it has to be paid by you. However, any excess is paid back to you.
  • Survival Benefit with Revival Scheme: The survival benefit that becomes due in a money back policy can easily be used for policy’s revival, only if the revival date is later than the Survival Benefit. However, if the SB amount is less, then the shortfalls have to be paid by you. However, the excess SB is paid back to you as well.

However, in order to avoid such penalties and revival process, it is suggested to pay your LIC policy premium on time. The best way to do so is to pay it online through the following LIC online premium payment method:

LIC Online Premium Payment Method

The steps for LIC online premium payment method are:

  • Step 1: Go to the website of LIC of India. From there select ‘Through customer portal’ or ‘Pay direct’.
  • Step 2: These options will ask to give the credentials and details of your policy from LIC. The login ID and password of LIC is required, if you have selected the option of the customer portal. Give all the required information and click the ‘Submit’ button.
  • Step 3: Upon clicking the ‘Submit' button, you will be asked to give the number of your policy and the payable premium amount.
  • Step 4: After entering all the details, you can see all your enrolled policies.
  • Step 5: After seeing the details of your policy on the portal, you can see an option that says ‘Pay Premium Online’ that will enable you to pay your premium online.
  • Step 6: From this page only, select the policies for which you want to make the payment of the premium and then click the ‘Submit' button for confirming the selection.
  • Step 7: The payment gateway page opens where you can make the selection for the preferred payment option. You can choose either debit/ credit card or net banking.

Final Words: In this way, by following this process you can revive your LIC policy easily if it lapses. Moreover, in order to avoid the lapsed policy and late payment fees, it is suggested to pay the premium on time and online without investing much effort and time. By following the above mentioned simple steps, you can pay the premiums of your LIC policy simply. So, avoid late premium payment fees by paying regular premiums on time easily on the website of LIC and creating your LIC login there. Having login gives you the ease of accessing your LIC policies and you can check their status as well.

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.