What to do about a lapsed LIC policy
A missed premium is far more common than people admit, and it is usually recoverable. What matters is how long it has been.
This explains what actually happens when payments stop, and what options remain at each stage.
The sequence after a missed premium
LIC allows a grace period after the due date, during which the policy remains fully in force. Miss that, and the policy lapses.
If enough premiums were paid before it lapsed, the policy may acquire paid-up value — it continues with a reduced sum assured rather than ending. If not enough were paid, cover simply stops.
A lapsed policy can usually be revived within a defined window by paying the arrears with interest, and sometimes with fresh health evidence. That window is finite, and the terms get harder the longer it is left.
Before you surrender it
Surrendering a long-held policy is often the most expensive option available, because surrender value in the early and middle years is typically well below what was paid in.
A policy loan against the accrued value is frequently the better route if the underlying problem is a short-term cash need rather than a permanent one.
From LIC's own brochures
Plans
No plan list on this page
This page is about a process rather than a product, so there is no plan list to show.
Common questions
How long do I have to revive a lapsed LIC policy?
LIC allows revival within a defined period from the first unpaid premium. The exact window and the terms depend on the plan and how long it has lapsed — the revival guide covers the process.
Will I lose everything if my policy lapsed?
Not necessarily. If enough premiums were paid, the policy may have acquired paid-up value and continue with reduced cover. The paid-up guide explains how that is calculated.
Is it cheaper to revive or to start a new policy?
Usually reviving, because a new policy is priced at your current age and may need fresh underwriting. But it depends on the arrears and interest involved.
Not sure which of these applies to you?
Five questions, no account needed, and it will tell you honestly if nothing fits rather than pushing the closest match.