Late Payment Charge for a LIC Premium

LIC India provides a grace period to make policy premium payments without paying any extra charges. But if the policyholder has crossed or has not paid the premium of his/her policy within the provided grace period, then the policy lapses. However, the life assured has the option to revive the lapsed policy within the policy term subject to the terms and conditions of revival.

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Revival of LIC Policy 

LIC India offers the option to revive the policy by paying the premiums with interest within 6 months starting from the due date of the 1st unpaid premium. The company considers the delay of 30 days for yearly/half-yearly/quarterly and 15 days for monthly premium payment for the policy revival process. 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




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

 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 2 months and this continues
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The Revival Options of LIC Policy

Revive your policy within 5 years from the date of 1st unpaid premiums

Life Insurance Corporation of India offers financial protection and security to you and your loved ones, provided that you are required to pay premiums regularly. If the premium dues are not paid for a long time or within the grace period, the policy may lapse and you might lose all your benefits. But, if you wish to revive the policy, then you can do it within 5 years from the first unpaid date of premium. The LIC of India offers 5 different schemes under which you can easily revive your policy. Here’s a quick laydown:  

  • 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 a ‘Declaration of Good Health’ under form number 680 and a 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 document is needed in the ordinary scheme of revival. However, you should meet the following conditions 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 a 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 the yearly premium’s half.

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

How To Revive The LIC Policy? 

You can revive the LIC policy with the insurance company directly by paying all the interest charges for the late premium payment. Once the policy is revived, the benefits from the plans are also restored. Contact LIC agents or visit the LIC branch to complete the process of revival. You can also contact your LIC agent or customer care of LIC for more information. But, it is advisable to keep the policy in force by paying premium dues on time. Insurance companies generally remind you by sending the mail or message to pay premiums on time. 

As we have discussed, LIC is providing opportunities to its customers to revive their lapsed policies. The insured has come up with LIC Lapsed Policy Revival Scheme 2021. Under this scheme, LIC India has decided to provide up to a 30% of rebate in late premium charges. If the payment of LIC premium is from 1 lakh to 3 lakhs, then the LIC lapsed policyholders will be provided a 25% rebate. In case if the annual premium is above Rs 300001, then the insurer provides a 30% of rebate. Policies with particular eligibility can be revived within 5 years from the date of 1st unpaid premium, subjected to the T&Cs. 

LIC Online Premium Payment Method

To avoid the above-discussed penalties and revival process, it is suggested to pay your LIC policy premium on time. The best way to do so is to pay premiums online through the following LIC online premium payment method:

The steps for LIC online premium payment method are:

  • Step 1: Visit the official website of the LIC of India.  Select ‘Through customer portal’ or ‘Pay direct’.
  • Step 2: Then, you are required to provide all the credentials and details of your policy from LIC. The login ID and password of LIC are 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: Then 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, 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 account. LIC portal gives you the ease of accessing your LIC policies and you can check their status as well.

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