Everyone tries to pay the insurance policy premium on time, but sometimes it gets missed. Policy lapse is not done only by not depositing premium till the fixed deadline. If we cannot deposit the premium of the policy even during the grace period, then the policy lapse. Although the lapsed policy can be revived.
insurance companies usually have two to three years after the grace period to get the policy revived. This period is known as revival period. Your policy document contains this information. If your policy has lapsed, then your effort should be to restart the policy within the revival period.
Payment and Penalty
If you want to resume a lapse policy, you have to pay the premium for all the years since it was lapsed. Also keep in mind that for not paying the premium, a penalty will also have to be given by the insurance company.
Declaration of good health is enough for revival in most of the cases but in some cases medical check-up is necessary in the prescribed medical center.
Keep in mind that the revived policy becomes a new policy. The insurance company can put new conditions in it. On receiving a new policy document, it should be studied carefully.
Keep these things in mind
- Make the policy operational again, it is more economical than buying a new policy.
- The insurance companies run the policy revival camp from time to time.
- Their purpose is to encourage people to revive the lapse policy.