How Can You Revive a Lapsed Insurance Policy?
Table of Contents
All benefits offered to the policyholder are ceased, and the policy gets terminated due to nonpayment of premiums on the due date or even after the grace period has elapsed. This is referred to as a lapsed insurance policy. An expired or dead insurance policy can be brought back to life by meeting the policy's terms and conditions. Insurance firms also run policy revival efforts to encourage individuals to reactivate their lapsed policies and extend policy benefits. Learn how to reactivate a lapsed policy by reading this article.
How Can You Apply To Revive a Lapsed Insurance Policy?
The length of time between when a policy expires and when a request for revival is made, as well as the type of policy, determine whether or not a policy can be revived. Most companies allow two to three years for reinstatement after the grace period has expired. This information, as well as the procedure to be followed, is included in the policy paper. To resurrect a lapsed policy, the policyholder must submit a revival application to the insurance company. A standard revival form may be required by the company. In some circumstances, a medical examination at a designated medical facility is required. In other circumstances, the revival may necessitate a declaration of good health. As a result, you may be required to undergo health examinations. To understand the process, you should get help from an insurance representative or go to a firm branch.
Must read: Ensure to Renew Your Policy Early If Lapsed, or Lose This Benefit
How Can You Revive a Lapsed Insurance Policy Within 6 Months From Lapse Date?
The process is straightforward if you apply to revive your insurance within 6 months of the day it lapsed. You can call your insurance provider and pay up the past-due rates, plus any interest, to have your policy reinstated. This can also be done online.
How Can You Revive a Lapsed Insurance Policy After 6 Months From Lapse Date?
If you file for revival after your policy has lapsed for more than 6 months, you will be required to pay the late premiums, as well as interest at a rate of 12-18 per cent of the premium amount. Penalties are also assessed based on the insurer's policies, policy lapse time, and policy type. Your insurer decides whether or not to renew your life insurance coverage. Your life insurance company may change the policy's original terms and conditions, raise the premium, or request a medical certificate. It may also request that you undergo a series of medical tests in order to analyse your current health status.
Take Away
Life insurance is a crucial component of your investment portfolio since it protects your family's financial future in the event of your death. You should pay your premiums on time, and even if you miss one, you must renew your coverage to ensure that you and your loved ones are constantly protected. You can even make it a habit to schedule reminders for your insurance premium payments.
Also read: How To Revive Lapsed LIC Insurance Policy Online?
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
