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Last Updated : Nov 04, 2019 12:38 PM IST | Source: Moneycontrol.com

LIC policyholders can now revive policies lapsed for above 2 years

The LIC policyholders who bought their policies after January 1, 2014 could revive their non-linked policies within five years and unit-linked policies within three years of the first unpaid premium.

Life Insurance Corporation of India (LIC) policyholders can now revive their policies that have lapsed for more than two years. In a statement, LIC said that it is now providing an opportunity to revive such older policies.

If it is a traditional non-linked policy, five years will be given as the time limit. A policy gets lapsed if the premium is not paid within the due date. Usually, the policyholders get a few months' time to pay the due premium amount to keep the policy active.

After the IRDA Product Regulation 2013, which came into effect on January 1, 2014, the revival period was restricted to two consecutive years from the date of the first unpaid premium.

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The LIC policyholders who bought their policies after January 1, 2014 could revive their non-linked policies within five years and unit-linked policies within three years of the first unpaid premium.

During this period, the policyholder is entitled to revive the policy which was discontinued due to the non-payment of the premium. All policies taken after January 1, 2014 could not be revived if they remained in lapsed condition for a period exceeding two years.

Vipin Anand, Managing Director - LIC, said, “Buying life insurance is one of the most prudent decisions a person takes in life. Unfortunately, there are circumstances when one is unable to continue paying premiums and the policy lapses. It always makes a better sense to revive an old policy rather than discontinuing it and buying a new policy to restore insurance cover." 

With a view to extend the benefit of continued life cover, LIC approached the insurance regulator. The life insurer said that, as a special gesture, it had extended the benefit of longer revival period to even those policyholders who bought policies after January 1, 2014.

The policyholders who are able to revive their policies within the set time frame can continue to get the life insurance cover and its benefits without the need to buy another product.

LIC has said that this is a unique opportunity in the industry.

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First Published on Nov 4, 2019 12:38 pm
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