LIC Policy Re-activated! Customers can resume the closed LIC policy, Death claim payment method

New Delhi: If you are a policy holder of LIC, but for some reason your policy has stopped, then it can be resumed or restored. LIC has said that it is running a special campaign from September 1, under which the discontinued policy can be reactivated.

Life Insurance Corporation of India (LIC) has launched a special campaign for the revival of individual lapsed policies. LIC celebrated its 67th anniversary on August 31, 2023 and announced the launch of a special campaign, which will be effective from September 1, 2023.

Revival of lapsed LIC policies

• If your policy has lapsed or lapsed due to non-payment of premium on time then the terms and conditions of the policy contract are invalid unless you reinstate it.
• Lapsed coverage must be reinstated by paying the accrued premium along with interest and providing necessary health information.
• Always keep your policy in force to guarantee that your family receives the financial protection provided by your policy.
• With the exception of certain claim concession schemes, certain discounts are available depending on the period for which you have been paying the premium.

What is a lapse policy?

Lapsed policy means lapse of insurance if the premium is not paid within the agreed days. A lapsed policy can be reinstated as per the terms of the plan on submission of evidence of continued insurability to LIC and payment of all premium dues along with interest at the rate prescribed from time to time.
However, LIC reserves the right to revive the canceled policy or not. Reinstatement of a discontinued policy will be effective only if it is approved by LIC.

How will the payment be made on death claim during the lapsed period?

1. As per LIC website If the policyholder has paid premiums for at least 3 complete years and subsequently stops paying premiums, and death of the life assured within six months from the due date of the first unpaid premium In case of policy money will be paid in full after deduction. The money along with interest on unpaid premiums till the date of death will be given to the nominee of the policy holder.
2. If the policyholder has paid premiums for at least 5 full years and subsequently stops paying premiums and the life assured dies within 12 months from the due date of the first unpaid premium, then the policy Full amount will be deducted and paid.