LIC Policy Lapsed? How to Revive Your Policy

If you have missed paying your LIC premium beyond the grace period, your policy is considered "lapsed." A lapsed policy loses its risk cover and benefits. However, LIC allows you to revive your lapsed policy by paying the overdue premiums with interest. This guide explains all revival methods, documents, and procedures.

What Does "Lapsed Policy" Mean?

When you don't pay your LIC premium within the grace period (15-30 days after the due date), the policy enters a lapsed state:

• Risk cover stops — no death benefit will be paid if the insured dies
• Loan facility is suspended
• Bonus accumulation stops
• Maturity benefit may be reduced or zero (depending on how many premiums were paid)

Good news: LIC allows policy revival within 5 years from the date of the first unpaid premium (for most plans).

Types of LIC Policy Revival

1. Ordinary Revival

This is the standard revival method available for most lapsed policies.

Eligibility:

• Policy must be within 5 years from the first unpaid premium date
• Available for all individual life insurance plans

What you need to pay:

• All overdue premiums (from the first unpaid premium to the current date)
• Interest on overdue premiums (currently around 9-10% per annum, compounding half-yearly)
• Interest rate is decided by LIC and may change periodically

Medical requirement:

• If lapsed for less than 6 months: usually no medical exam
• If lapsed for 6 months to 2 years: Declaration of Good Health (DGH) form
• If lapsed for more than 2 years: full medical examination may be required
• Medical requirement also depends on the age of the policyholder and sum assured

Steps for ordinary revival:

1. Visit your LIC branch (servicing branch mentioned on your policy)
2. Submit Revival Application Form (Form No. 680)
3. Submit Declaration of Good Health or undergo medical examination as required
4. Pay all overdue premiums + interest
5. The branch will process the revival within 7-15 working days
6. Once revived, your policy status changes to "In Force"

2. Special Revival Scheme

LIC periodically announces special revival schemes with relaxed terms. These are time-limited offers.

Benefits of special revival:

• Reduced late fee or interest rates
• Relaxed medical requirements
• Concessions on the total revival amount
• Available only during the scheme window (typically 3-6 months)

How to check if a special revival scheme is active:

• Visit licindia.in and check the notifications section
• Ask your LIC agent or branch
• Check LIC's social media channels

Tip: If your policy is lapsed and you are in no immediate hurry, wait for a special revival scheme announcement — it can save you significant money on interest.

3. Installment Revival

If you cannot afford to pay all overdue premiums at once, LIC offers installment revival for eligible policies.

How it works:

• Pay the overdue premiums in installments instead of a lump sum
• Typically, you need to pay at least 2 years' worth of overdue premiums upfront
• The remaining overdue premiums can be paid in installments along with your regular premiums
• Interest is charged on the outstanding overdue amount

Eligibility:

• Generally available for policies lapsed for 3+ years
• Available under specific special revival schemes announced by LIC

4. Revival by Loan (Loan-cum-Revival)

If your policy has acquired a surrender value before lapsing:

1. LIC grants a loan against the policy for the revival amount
2. The loan covers the overdue premiums and interest
3. You then repay the loan in installments
4. Regular premium payments resume from the current date

This option is useful when you don't have the lump sum for revival but want to restore coverage immediately.

Documents Required for LIC Policy Revival

Step-by-Step: Revive Your LIC Policy

Online Revival (Limited)

Currently, full online revival is not available for all policies. However, you can:

1. Log in to ebiz.licindia.in
2. Go to My Policies and select the lapsed policy
3. Check the Revival Quote — this shows the exact amount needed for revival
4. Note the amount and proceed to your branch for processing

Offline Revival (Branch Visit)

1. Get a revival quote — visit your servicing branch or check online for the exact revival amount
2. Collect forms — get Form No. 680 (Revival Application) and DGH form from the branch
3. Fill the forms — complete all details accurately
4. Undergo medical exam (if required) — LIC will arrange this at their empanelled medical centre
5. Pay the revival amount — pay all overdue premiums + interest by cheque, DD, or online
6. Submit documents — submit all forms and documents at the branch
7. Wait for processing — revival is typically processed within 7-15 working days
8. Confirm revival — check your policy status online to confirm it shows "In Force"

Revival Charges: How Much Will You Pay?

The total revival cost depends on:

• Number of unpaid premiums — all must be paid
• Interest rate — approximately 9-10% per annum (compounding half-yearly)
• Medical exam fee — if applicable, ranges from ₹500 to ₹2,000

Example calculation:

• Annual premium: ₹10,000
• Lapsed for 2 years: 2 unpaid premiums = ₹20,000
• Interest (approx. 9.5% for 2 years): ~₹3,800
• Total revival cost: ~₹23,800

The exact amount will be calculated by LIC based on the policy plan and lapse duration. Always get a revival quote first.

Time Limit for Revival

After the time limit expires, the policy cannot be revived. You may only get the surrender value (if eligible).

Important Tips

1. Don't buy a new policy to replace a lapsed one — revival is almost always cheaper than buying a new policy at an older age.
2. Check for special revival schemes before reviving — LIC periodically offers concessions that can save you money.
3. Get the revival quote first before arranging funds — the amount may be different from your estimate.
4. Set up auto-debit (NACH) after revival to prevent future lapses. See our premium payment guide for payment options.
5. Keep your contact details updated with LIC to receive premium reminders.

Frequently Asked Questions

1. Can I revive my LIC policy after 5 years?

Generally, no. The standard revival period is 5 years from the first unpaid premium. However, during special revival schemes, LIC may allow revival beyond 5 years for certain plans.

2. Will I get the full bonus after revival?

Yes, once revived, your policy will receive bonus for all the years it was in force (before lapsing). Bonus for the lapsed period may not be applicable for all plans.

3. Can I revive my LIC policy online?

Currently, complete online revival is not available for most policies. You can check the revival quote online but need to visit the branch for processing and document submission.

4. What happens if I don't revive my lapsed LIC policy?

If you don't revive within the time limit: (a) if less than 3 years' premiums were paid, you get nothing; (b) if 3+ years' premiums were paid, you may receive a reduced paid-up value at maturity or surrender value.

5. Is medical examination mandatory for revival?

Not always. For policies lapsed less than 6 months, usually a simple Declaration of Good Health is sufficient. Medical exams are typically required for longer lapse periods, older policyholders, or high sum assured policies.

6. Can my LIC agent help with revival?

Yes, your LIC agent can assist with the revival process — collecting forms, scheduling medical exams, and submitting documents at the branch.

7. Can I revive a policy if the policyholder has died during the lapsed period?

No. A lapsed policy does not provide death cover. If the insured person dies while the policy is lapsed, no death claim can be made.

This guide is for informational purposes only. CitizenNest is an independent platform and is not affiliated with LIC or the Government of India. Always verify details on the official LIC website.