Paying premiums and missed due dates
Missing a premium due date is not the same as lapsing. Every policy carries a grace period during which the policy remains fully in force and the premium can be paid late without consequence — including a death claim during that window, which is paid.
What ends the policy is letting the grace period run out. That is the line worth knowing precisely, because everything on the other side of it — revival, health declarations, medical examinations — is harder than simply paying late within the window.
When this applies
- You have missed a due date and want to know whether the policy is still in force
- You want to change how often you pay — yearly, half-yearly, quarterly or monthly
- You want premiums collected automatically rather than remembered each time
What is typically required
A starting point, not a definitive list — LIC's exact requirement can vary by branch and by the specifics of your policy. Confirm before you travel.
- The policy number and the due date in question
- For a change of frequency, a request to the servicing branch — the change usually takes effect from the next policy anniversary
- For automatic collection, a mandate authorising the debit from your bank account
The order to do it in
- 1Check the grace period for your plan — it is stated in the policy document and shown on each plan page on this site, taken from the brochure
- 2If you are still inside it, pay the premium now; the policy has never left force and nothing further is required
- 3If the grace period has passed, the policy has lapsed and the route back is revival, not a late payment
- 4Either way, set up automatic collection or a calendar reminder afterwards, so the same thing does not recur
What has to go through LIC directly
Premiums are paid to LIC, through its own channels — its branches, its portal, or an authorised collection point. KNATRA does not collect renewal premiums on LIC’s behalf, and you should be cautious of anyone who offers to.
Watch out for
- Paying yearly generally costs less over the policy’s life than paying monthly, because the more frequent modes carry a loading. If cash flow allows it, the annual mode is the cheaper choice.
- A missed premium on a policy carrying a loan is worse than either problem alone — the loan interest continues while the policy heads towards lapse.
- Do not assume a bank mandate is still working. Cards expire and accounts get closed; a mandate that silently stopped is a common way a policy lapses without anyone deciding to let it.
Common questions
- Is my LIC policy still valid if I miss the due date?
- Yes, during the grace period. The policy stays fully in force and a claim arising in that window is payable. The grace period length is set out in your policy document and on each plan page on this site. Once it expires without payment, the policy lapses and revival becomes the route back.
- Is it cheaper to pay LIC premiums annually?
- Generally yes. Half-yearly, quarterly and monthly modes carry a loading over the annual premium, so the same cover costs more over the life of the policy when paid more frequently. If your cash flow can absorb one annual payment, that is the cheaper mode.
- Can I change my premium payment frequency?
- Yes — request it from the servicing branch. The change normally takes effect from the next policy anniversary rather than immediately, so plan the switch around that date rather than expecting it mid-year.
Related
Need this done rather than explained?
Full servicing assistance — preparing the paperwork, following it up with the branch, and chasing it to completion — is for policies bought or serviced through KNATRA. If your policy is with another agent or was bought directly from LIC, everything on this page still applies to you, and you are welcome to ask for help with a specific case.