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How To Revive Lapsed LIC Insurance Policy Online

28 June 2022, 12:47 PM

In today’s world, eventuality and mishap can occur at any point in time. Life insurance policy plays a prominent role in securing an unforeseen circumstance. It is a lifesaver in difficult times where financial support is of priority. Life insurance policies offer benefits for a specified period depending upon the type of plan. It is important to renew the plan on time. However, if you wish to revive your policy after the end of the grace period as well, there is an option to do the same. In most cases, if you miss out on renewing a life insurance policy the option to revive it at all is missed. It further leads to a lapsed/dead policy. 

Let's understand the importance of reviving a lapsed life insurance policy and other factors related to it. 

Lapsed Insurance Policy

A lapsed insurance policy ceases the existence of benefits under it and terminates due to non-payment of premium on a given date or even after the grace period. Delay in payments leads to the policy being dead or lapsed. It is important to adhere to the terms and conditions of the policy statement while signing up for a life insurance policy to rule out the possibility of a loss. Revival and reinstatement are important as far as financial security is concerned. 

In some cases, life insurance coverage does not stop completely even if the policy lapses. A reduced life insurance coverage can continue. But it depends on the type of the plan and its underlying terms and conditions.

In most cases, either a declaration of good health or sometimes medical tests need to be done at the time of reviving the life insurance plan. This is because, once the continuity of the plan stops, the contract between the insured and the insurer terminates. In order to restart your life insurance coverage, you need to provide a proof that you are not suffering from any illness during the period for which your coverage had ceased to exist.

What Happens After a Policy is Renewed?

A renewed life insurance policy acts as a fresh contract between the insurance provider and the insured. The provider can impose new terms and conditions depending upon the plans and premiums opted by the insured. The revival of an insurance policy also enables the provider to provide continued coverage with the lapsed policy at a lower amount, in some cases, up to the paid-up value of the policy.

Life Insurance Policy Revival Schemes

There are several Revival schemes available for policyholders. The schemes come into play if a policyholder has not paid the premiums on time or even during the grace period.

Installment Revival Scheme 

In the case where premiums are paid in installments, the installment revival scheme can be opted to renew a lapsed policy. The revival scheme offers a few conditions as under:

  • No existing loan under the policy while Revival
  • Installment Revival schemes cannot be availed if a policy is issued under Salary Saving Scheme
  • Revival will not be possible is Survival Benefit falls during the installment pay period

Special Revival Scheme

Here, the date of commencement of the scheme can be shifted for the insurance holder and the person insured will be liable to pay the due according to the Special Revival scheme. A common option employed, where the policyholder is unable to pay the premium in a lump sum amount. Under special cases the scheme imposes the following terms and conditions:

  • Showcase of medical reports and also a certificate of good health
  • The medical report and declaration of good health is admissible under Form no. 680
  • The scheme can be used only once during the entire term of the policy
  • The scheme is valid within three years of the date of lapse of the policy

Loan Cum Revival Scheme 

The scheme employs revival by recovering arrears of premium. The arrears are payable from the loan amount available under the terms and conditions of the policy. The terms and conditions include:

  • In case the loan amount does not cover arrears of premium, the difference so calculated will have to be borne by the policyholder
  • Post adjusting interest and premium, the insured will get the balance in return

Ordinary Revival 

Under the ordinary Revival policy, the policyholder is allowed to revive the lapsed insurance policy by clearing all the dues. Precisely, paying the unpaid premiums along with the interest in a lump sum amount.

Survival Benefit Scheme 

The policyholder can use the survival benefit option and revive the money-back policies. If the due date for payment comes earlier than the renewal date, the person insured can avail the Survival Benefit.

How Long Can You Revive Your Policy?

Generally, life insurance policies can be revived within five years from the date of the first premium unpaid. The Life Insurance Corporation of India launched a campaign to make sure revived policies also offer the same benefits as long as the policy continues. 

The LIC Revival campaign encourages people to renew the life insurance policies, along with a concession on late fees. Eligible plans under certain terms and conditions are applicable under the revival campaign of LIC. Once a lapsed policy has been revived, financial security continues for the insured. 

As a policyholder, it is important to pay the premiums on time. Once the premiums are due or unpaid over a long period, the policy may lapse again, even after renewal. The Life Insurance Corporation of India encourages policyholders to claim the maturity amount if any of them have missed claiming it on the given claim date.

What Happens If You Miss Reviving Your Insurance Policy?

The grace period of five years from the first day of the unpaid premium carries over along with a penalty. The percentage of penalty on the sum assured varies with each insurance plan. LIC charges a late fine penalty on premium dues at the rate of 9.5 % per annum. 

Upon reviving a lapsed policy, policyholders have to pay the total premium dues, in addition to the interest amount. To know if your policy is capable of revival read your policy documents carefully. In most cases, insurance does not allow policy revival beyond five years. 

Revive a Lapsed Policy or Buy a New Plan?

The pre-2013 guidelines have increased policy conditions and forced insurance companies to garner premiums from existing customers in the form of heavy penalties along with the due amount. Post the pre-2013 guidelines the policy conditions framed depends upon the period for which premiums were not paid by existing customers.

The annual bonus declared by the insurance is not available after the policy lapses. It is important to check the surrender value if the policy is more than three years old. Renewing a lapsed policy may cost less. Premiums of a new policy with certainly be high.

Of course, for situations where reinstating the plan may seem a good option, check if there are chances of the money getting forfeited. In such cases, reviving the existing plan is a good option. Also, if the insured is under serious health issues, it will be easier to negotiate the premiums with the existing insurer than going for a fresh plan. 

Can You Log in With Your User ID And Password on Getting Your Revival Quotation?

Yes, it is possible. Login with the registered user option below the new user button. 

The LICOnlineServicePortal has the revival quotation under the functionalities offered. You can download Form no.680, form no. 700, and form no. 720 and submit the forms online. 

The portal also ensures to display the premium due calendar for reference. You can find the detailed process in the portal itself. 


A life insurance policy can be easily revived, depending upon the duration, health records, availability of concessions, and considerable funds charged under the policy. The factors highly depend on the sum assured in the period after the policy has lapsed. 

A revival is a good option if the duration of the policy has not exceeded the specific time. Ensure to keep the health records handy as the insurer may ask for it to consider the age of the insured and also the sum assured.


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