If you have taken a policy from the Life Insurance Corporation of India (LIC) and it has lapsed, then there is an opportunity to revive it. The LIC has been running a special campaign since February 7 to revive the lapsed insurance policies cheaply. The campaign will end on March 25.
The LIC said for this the policyholder will have to pay a low late fee. "While the current Covid-19 pandemic scenario has emphasised the need for mortality protection, this campaign is a good opportunity for LIC's policyholders to revive their policies, restore life cover and ensure financial security for their family," the insurance corporation said in the release.
It also said under the campaign, policies of specific eligible plans can be revived within five years from the date of the first unpaid premium, subject to certain terms and conditions.
These conditions apply:
The premium should not be more than five years old from the date of default. This means the policy can be revived within five years of default in the first premium payment.
The late fee waiver will not be available in case of high-risk plans such as term assurance, multiple risk policies, etc.
Eligible health and micro-insurance plans also qualify for the concession in the late fee. The LIC is offering a full concession in late fees for micro-insurance plans. But, there are no concessions on medical requirements.
Concession in late fee for eligible policies