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What happens if LIC policy lapses?
A Lapsed Policy If the insured does not pay the premium amount even during the grace period, the life insurance policy lapses. In this state, the insured will no longer enjoy coverage from the policy, and will also not be eligible for any death benefit.
What is LIC lapse?
Definition: The policy for which all benefits to the policy holder cease and is terminated due to non payment of premium amount on the due date or even after the grace period is called a lapsed policy. However, a lapsed policy may be revived by fulfilling the terms and conditions as per the policy statement.
How long does it take for a policy to lapse?
The terms and conditions of long-term insurance policies often state that a policy lapses 30 days after a premium has not been paid.
How can I keep lapsed LIC policy?
The policyholder can revive a lapsed policy by paying the premiums with interest….Types of LIC Policy Revival Schemes
- Installment Revival Scheme.
- Loan cum Revival Scheme.
- Special Revival Scheme.
- Survival Benefit cum Revival Scheme.
How can I revive my lapsed PLI policy?
According to a press note issued by the Chief Postmaster General’s Office, as a one-time measure, policies which have crossed 5 years since the date or last premium paid. Such policy holders may revive their policies, by writing to any nearest Post Office.
What is revival policy?
Definition: Insurance policy lapses when the insured defaults on the payments of renewal premium beyond a grace period. This period offered by the insurer to revive the policy and avail benefits pertaining to it is termed as revival period.
What is a lapsed policy?
Lapsed Insurance Policies When policyholders stop paying premiums and when the account value of the insurance policy has already been exhausted, the policy lapses. A policy does not lapse each and every time a premium payment is missed.
Can I surrender my lapsed LIC policy?
Guaranteed Surrender Value: A policyholder can surrender his/her policy only after the completion of 3 years, i.e. the policy has to have been in force for a period of 3 years, at least. The surrender value provided by LIC is essentially 30\% of the premiums that have been paid so far.
Can we stop PLI before maturity?
A traditional life insurance policy can be either turned into a paid-up one or surrendered before its maturity. In case of a term life insurance policy, if you stop paying the periodic premium, the policy automatically lapses, i.e., the risk cover ceases but there is no other additional downside or cost.