Reviving an expired life insurance policy
By , 25 Aug 21
Indian life insurer launches campaign to encourage lapsed policyholders to reinstate coverage
The financial impact of covid has seen two extremes around the globe.
While the super wealthy have become even richer, many low-income workers have been unable to work or had their income sharply reduced.
This meant that many expenses had to be cut, with some stopping their pension and saving contributions, or having to tap into them to make ends meet.
Others have been forced to stop paying insurance premiums, meaning they are potentially losing coverage that has been built up over many years.
Eligible for renewal
But Indian insurance giant Life Insurance Corporation of India (LIC) has launched a revival campaign.
It is offering “concessions in late fee” for eligible policies to provide continued risk cover to clients.
All insurance plans, with the exception of term assurance and high-risk policies, will be eligible for renewal, LIC said.
These include health and macro insurance plans, depending on the total premium paid.
There won’t be concessions on medical requirements, however.
The insurance giant said that policies can be revived within five years from the date of the first unpaid premium, subject to terms and conditions.
Plans that are in a lapsed state during the premium-paying term and did not complete their policy term are also eligible for renewal.
The campaign was rolled out on 23 August and will run until 22 October 2021.
LIC said: “[It] is launched for the benefit of those policyholders whose policies lapsed as they were not able to pay premiums on time due to unavoidable circumstances.
“It always makes better sense to revive an old policy to restore insurance cover. LIC values its policyholders and their desire to stay protected. This campaign is a good opportunity for LIC’s policyholders to revive their policies and restore life cover and ensure financial security for their family.”