New Delhi: The significance of life insurance has been driven home to almost all segments of the population during the Covid-19 pandemic. However, it is the duty of the beneficiary to ensure that the policy continues and doesn’t lapse due to negligence on the part of the beneficiary for non-payment of premium. The public sector Life Insurance Corporation of India, or LIC, is the market leader in the life insurance business. Let’s see what a policyholder can do if a policy gets lapsed inadvertently.
How to revive LIC lapsed policy
The broad steps for LIC lapsed policy revival consist of submitting a request in writing, paying up the required amount with a penalty if any is applicable and waiting for the company’s approval to resume the old policy. One should remember that the decision to revive is solely at the discretion of the company.
Write to the company to get the lapsed policy revived. LIC will calculate the amount that you have to pay to revive it. You can pay the amount in instalments. LIC usually sends a letter of intent to the policyholder. It contains the amount to pay and the schedule of payment.
What is letter of intent?
The entire amount has to be paid up according to the schedule mentioned in the letter. LIC has to approve the policy and it will be considered as resumed only after the company approves it. On its website, LIC has uploaded 3 forms — number 680, 700 and 720. Form 680 concerns lapsed policies on medical and non-medical grounds. Forms 700 and 720 concern personal statements regarding health for two sets of circumstances.
How to revive LIC lapsed policy
One can also take the help of LIC customer service in the instance of such a policy lapse. It is very important to remember that LIC allows a policyholder only one opportunity to revive a lapsed policy. One cannot use it as a license to do it repeatedly. Also, if a policyholder is unable to pay premiums and the policy is discontinued, the money remains with LIC as an unclaimed amount. LIC has a system to check the unclaimed amount.
LIC takes safeguards to ensure your policy doesn’t lapse by providing a 15-day grace period after the scheduled date for premium payment. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
