Revival of LIC Lapsed Policy
Procedure | Forms | Type of Revival | Grace Period | Documents Required
When the premium of inforced policy is not paid timely that is on the due date or within the grace period, the LIC policy got lapsed. Lapsation means risk cover is stopped temporarily for a period until the policy is not revived. During lapsation, the policyholder does not get the full benefits of the LIC policy. Even in case of death, no claim is paid to the nominee of the life assured except the paid value. So to get the full benefits, the revival of lapsed LIC policy is must.
Grace Period: The grace period is the additional time period given in LIC policy after the due date, that is if the full premium is paid within this period neither late fees is applied nor the policy will be lapsed.
Grace period in Endowment policy if the premium mode is yearly, Half-yearly, or Quarterly: 30 days.
Grace period in Monthly policies, ULIPS, and Term plans is just 15 days.
An inforce LIC policy is like an umbrella for the family of the policyholder but a lapsed LIC policy is like a torn umbrella. It neither helps the policyholder nor its family members in any manner.
Note: A policy can be revived within 2 years from the FUP and before the maturity of the LIC policy. FUP stands for First Unpaid Premium. After 2 years, the policy can not be revived in any circumstances.
Steps to restart the LIC lapsed policy
- Pay the total due premium amount: Premium amount + Late fees
- Get the revival quotation of the lapsed policy from the nearest branch.
- Fill the revival form a)Form no. 680 DGH for those aged 18 & above b) Form no. 700 & 720 for aged less than 18yrs
- Id proof: Any of Pan, Adhar, Voter Id, DL, Passport
- Address proof: Adhar, Voter Id, DL, Passport, any utility bill
Note 2: Form no. 680, 700 or 720 mentioned above are downloadable in just 1 click.
Types of Revival
Ordinary Revival: It is the most basic kind of revival where the policyholder has to pay the entire premium due from FUP along with late fees in one go. The above-mentioned documents are also required to be submitted at the time of revival.
Loan cum Revival: When the policyholder is unable to pay the total premium due along with the late fees as mentioned in ordinary revival, then he can go for loan cum revival. The loan is calculated on the policy and given to the customer and his policy is revived. After that, the customer has to pay both the premium and loan amount together in installments. At the time of loan cum revival the policyholder needs to carry the Original policy bond, NEFT form, and loan form along with the documents mentioned above.
SB cum Revival: This kind of revival is possible only in moneyback policies where money back is fall due in a certain time. The moneyback is adjusted in the revival amount and the policy is revived. Note: Discharge form is taken along with NEFT form and bank details.
Procedure to be followed in LIC Branch
Visit the inquiry counter or the Policy servicing department (PS dept) in the LIC branch. Ask for policy revival quotation and form no. 680 as mentioned above. you can download this form by clicking on form no. 680. The branch official will provide you with the revival quotation. Fill the form no. 680. Note that fill the same details in form no. 680 as you filled in at the time of taking the LIC policy, like Height Weight and signature. Visit the PS dept of LIC they will verify the details and after that by paying the total premium due at the counter the policy will start again.
Note: Policies of SA more than 5lac are being uploaded by the staff on the DOC Q app.
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