When you choose to secure your life choosing insurance, you choose to secure it for a certain period. The life insurance policies are likely to get lapsed after a specific duration and if it is not renewed within the grace period, you might be deprived of the perks of the policy.
However, to save you from financial risks, the policymakers have come up with the solution of reviving life insurance. Amidst the hustle-bustle of life, remembering the due date of an insurance policy is indeed a difficult task. With the lapse of the policy, you stop get facilities and covers when you are in dire need of them.
When you are young, you may think that there is no need for the policy in your life but with the age, the necessity of policy becomes grave. At the time of renewing the life insurance policies India, a certain amount of money may be charged as penalty for not paying premiums within the due date.
Due Date and Grace Period in Life Insurance Policies
Time is an important aspect of everyone’s life and it even plays an immensely important role in the life insurance plans. If the premium is not paid within the due date, you do not need to worry because there is still chance for you to pay it within the grace period. The duration of grace period remains for 15 days to 30 days and to be sure of that, you need to check the life insurance policy document.
Types of Life Insurance Policies Available for Revival
When you choose a life insurance, you gradually acquire knowledge of the life insurance policies and how they work. The policymaker must have enlightened with the several types of policies for letting you choose the one that will be ideal for your financial plan. Thereafter, you should know that the provision of policy revival is only open for traditional life insurance policies which include endowment plan and term plan. The revival of the ULIPs is dependent on their terms and conditions. Now the terms and conditions are linked to the medical examinations before proceeding with the revival process.
Special Revival
Through the special revival, the date of initiating the life insurance policies need to be shifted and the life assured can give out a premium amount as per age at the time of revival. When the insurance is available and the policyholder cannot pay for the due lump sum amount for premium, this option becomes active. The policymaker can ask for reports of medical tests and declaration of sound health under the form no. 680.
Nevertheless, after going through life insurance policies comparison, you need to know there are certain circumstances related to the special revival scheme.
- The life assured can only opt for special revival if the due period does not exceed 36 months.
- Surrender value does not require being included under the life insurance policies and the revival scheme can be initiated within 36 months of the beginning of the basic policy.
- The revival option is only effective only during the whole tenure of the life insurance policies.
Ordinary Revival
Through the ordinary revival option, the policyholder can renew the insurance policy again by paying out for all the premiums that were not previously. The option also compels the insured to pay for the premium amount involving interest at a time. In addition to the context, similar to the special revival, the agent can ask for the declaration of sound health and medical test report under the form no. 680.
How do You Revive the Lapsed Policy?
When you fail to renew the policy within the due date, you may be charged with a certain amount of penalty at the time of revival.
- You should pay a visit to the insurance agent’s office and opt for life insurance revival quotes. This revival quote generally indicates the entire amount fixed by the premium amount that is due.
- The interest rate needs to be cleared with the unpaid premium of the life insurance policies. Additionally, you can further ask the agent about the life insurance policies taxable.
- Calculating the age during survival, the declaration form of good health is required to b submitted at the time of revival. The policyholder has to undergo a medical checkup if there is a pre-existing
- Most importantly, the life insurance policies can only be revived if they have not exceeded the period provided by the policymaker. However, what type of life insurance policies rates you have chosen previously can also regulate the period of the revival.
It is to note that life insurance plan details can differ from policy to policy and there may be certain concessions applied to the penalty for revival. Moreover, the insurance company decides the interest rates and penalty amount.
Also Read: What is Provision of Riders in a Life Insurance Policy?
Reinstatement Phase
During the revival period, the life assured needs to submit the documents of life insurance policies for proceeding to get a revival application time. The unpaid premium is required to be cleared by the insured and the penalty and interest rates must be charged at the time. When the documents are submitted and unpaid premiums are paid, the revival request of the policy is initiated.
The life assured may have to provide a declaration on health statement or an insurance certificate to the insurance agent and the form must be duly filled. At the end of the phase, you can get life cover on a regular basis. However, everyone should check whether the insurer has added any additional clauses as they tend to do so after the revival of the old policy.
There are certain ambiguities among many people in order to go for life insurance policies with cash value or simply opt for the revival of the old plan. And without managing two or three life insurance policies for families at a time, it is best to pay for the premium within the grace period. And it goes without saying that the immensely significant life insurance policies are capable of acting as financial security in everyone’s life.
