Missing an LIC premium can happen for many reasons. You may forget the due date, face financial problems, or simply miss the payment by mistake.
But does one missed premium mean your policy is cancelled?
The good news is that missing one premium does not immediately end your LIC policy.
LIC gives policyholders extra time to make the payment, and even if the policy lapses, there is still an option to restore it.
LIC Grace Period Explained
LIC allows customers to pay their premium even after the due date without any penalty during the grace period.
If you pay your premium every month, you get a 15-day grace period.
If you pay quarterly, half-yearly, or yearly, you get a 30-day grace period.
Your policy remains active throughout the grace period. If the policyholder dies during this time, the nominee is still eligible to receive the insurance claim.
When Does an LIC Policy Lapse?
Your policy is considered lapsed only if the premium is not paid even after the grace period ends.
Once the policy lapses, the life insurance cover stops. This means your family may not receive the policy benefits if something happens to you.
A lapsed policy can also affect bonuses and other benefits linked to the policy.
You Can Revive a Lapsed Policy
LIC allows most policyholders to revive a lapsed policy within five years from the date of the first unpaid premium. However, some policies may have different rules.
To restart the policy, you will have to pay the pending premiums along with the applicable interest and late fees. If the policy has remained inactive for a long time, LIC may also ask for a health declaration or a medical examination.
How to Revive Your LIC Policy Online
You don’t always need to visit an LIC branch to reactivate your policy. You can revive it through the official LIC website or the LIC Customer App.
LIC also launches Special Revival Campaigns from time to time, offering discounts of up to 30% on late fees. In many cases, reviving an old policy is more cost-effective than buying a new one.