In order to provide continuous risk coverage in these uncertain times, the Life Insurance Corporation (LIC) has created a chance for revival of Lapsed Insurance policies. For individual lapsed policies, a Special Revival Campaign will run from August 23 through October 22, 2021.
In a press statement, LIC stated that policies of particular qualified plans could be revived within five years of the initial unpaid payment, subject to certain criteria and limitations. Policies that have lapsed during the premium-paying term but have not yet finished the policy term are eligible to be renewed under this campaign, according to the company. Term assurance and high-risk plans, on the other hand, have been excluded.
Due to the current conditions, concessions are being granted in late fees for policies other than term assurance and high-risk policies, based on total premiums paid. However, talking about medical needs, there is no exception. As per the official press release published by the LIC on August 23, eligible health and micro-insurance policies are also eligible for a late fee reduction.
The campaign is being launched to help policyholders whose policies have lapsed because they have been unable to pay the premiums at the required time due to unforeseen circumstances. To reestablish insurance coverage, it’s always better to resurrect an existing policy. LIC respects its policyholders’ wish to be safeguarded. This campaign provides LIC policyholders with an excellent opportunity to renew their policies, reinstate life coverage, and provide financial stability for their families.
Policies of specified qualified plans can be revived under this Special Revival Campaign within five years of the initial unpaid premium, subject to certain criteria and circumstances.
“In light of the current circumstances, discounts in late fees are being offered for all plans except Term Assurance, and High-Risk Plans, based on total premiums paid,” LIC added.
How does the revival campaign work?
Eventually, the policies that are eligible could be easily revived within the tenure of five years. It covers the first unpaid premium subject to various terms and conditions. This is the official statement of LIC in a press release. The policies which are eventually in a condition to get lapsed during the premium paying terms and weren’t able to complete the policy term do have a chance of revival in this campaign. However, the term assurance and even the high-risk plans have been excluded. Also, LIC stated officially that in the prevailing situation, the concessions that are offered in late fees for Risk Plan would be dependent on the total premiums. Apart from that, there are no concessions on any sort of medical requirements or even on eligible health, and the Micro Insurance plans have qualifications for the concession at a late fee.
Concession to be offered on late fees:
- A 20% discount on late fines would be provided for total receivable premiums of up to Rs 1 lakh. The concession amount, however, cannot exceed Rs 2,000.
- A 25% discount on late fees up to Rs 2,500 would be provided for total receivable premiums ranging from Rs 1-3 lakh.
- A 30 percent late charge remission is allowed if the total recoverable premium exceeds Rs 3 lakh, but the concession amount cannot exceed Rs 3,000.
Arogya Rakshak, a non-linked, non-participating, regular premium, individual health insurance policy, was also established by the Life Insurance Corporation of India last month.The policy provides a set benefit health insurance coverage against specific specified health risks, as well as rapid assistance in the event of a medical emergency, and assists the insured and his family in remaining financially self-sufficient through difficult times.Under one policy, a person can insure himself, his spouse, all children, and his parents. The coverage is offered to principal insureds, spouses, and parents between the ages of 18 and 65, as well as children between 91 days to 20 years. The Cover Period is available for PIs, spouses, and parents up to the age of 80 and also includes their children up to the age of 25.High-risk insurance plans such as term assurance and multiple risk policies, for example, are not eligible for the discount.
Read this blog if you wish to know more about the revival policy of LIC. Check out the blog for further information.