The meaning of ‘Revival’ is ‘to bring back to life’. In case of LIC of India, revival is needed when an LIC policy gets lapsed if the payment of premium is not made during the grace period, which is minimum one month if you are making payment quarterly, half-yearly or yearly and 15 days if you are making payment monthly.
If policy lapses, you can revive it anytime within the tenure of 5 years from the date of the first premium that is unpaid. In this article I will be sharing the various ways or types of policy revival is possible in case you have purchased a policy from Life Insurance Corporation of India (LIC) which got lapsed.
Under the ordinary revival scheme, you can renew his policy by making the payment of all the due premiums (from the date of first due premium) in a lump sum along with the interest at existing rate of interest. You will require ‘Declaration of Good Health’ (DGH) in form no. 680 with a medical report.
If you or LA is not able to make payment of the undue premiums in a lump sum, his policy can be renewed by which the commencement date will shift and he will have to make payment of only one premium depending on the age (at the time of renewal). The medical report (if required) and Declaration of Good Health (DGH) are also necessary. The conditions mentioned below have to be met under the Special Revival Scheme:
- You can do the Special Revival only once during the term of the policy
- You are allowed for Special Revival within three years of lapse
- Your policy must not acquire any surrender value
In case you are not able to make payment of all the overdue premiums in a lump sum and the Special Revival scheme also does not suit you, you can make use of the Instalment Revival to renew your policy. Under the instalment revival scheme you can revive your policy by making payment of the following due amounts instantaneously:
Half the amount of the yearly premium if you choose to pay in yearly mode
One half-yearly premium in half-yearly payment mode
Two quarterly premiums in the quarterly payment mode
Six monthly premiums and four in the monthly mode of payment
You have to make payment of the due premiums in instalments within a term of two years together with the regular premium medical report (if required) and DGH is needed as per the term of the policy.
Survival Benefit-cum-Revival Scheme:
You can renew your money-back policy b y making use of Survival Benefit (SB) that falls due in it, in the case of survival benefit due date is earlier than that of the revival date. If the renewal amount is more than the amount of survival benefit, the surplus amount will be required, if the renewal amount is lesser than the amount of survival benefit. The rest of the amount is given back to the insured. The extra requirements for settlement of renewal and survival benefit are to be satisfactory.
You can revive your policy by taking loan on policy in case of your policy obtains the surrender vale on the date of revival. You can get a loan based on the premiums paid by you up to the date of renewal. If there is any deficit in the renewal amount, you will have to make payment of it. If the renewal amount is lesser than that of the amount of loan the remaining amount will be paid back to you.