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Policy Revival Schemes

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Policy Revival Schemes

A policy lapses when the premium on it is not paid within the 'days of grace'. A lapsed policy cannot participate in profits or enjoy the other benefits that a policy in full force does. While the most important thing is to make sure that a policy does not lapse; the next most important thing is to revive a lapsed policy.

A choice of 5 schemes is available by which to revive your lapsed policies.

Ordinary revival scheme

Special revival scheme

Revival by instalment method

Loan-cum-revival scheme

Survival benefit-cum-revival scheme

Ordinary Revival Scheme: The unpaid premium arrears along with the interest will have to be paid. A 'Declaration of Good Health' in form no: 680 and medical test (if required by the plan) is to be produced.

Special Revival Scheme: The date of commencement of the policy is advanced by the period of policy lapse. 'Declaration of Good Health' and medical test if required by the policy is necessary. This scheme can be availed only once during a policy term.

Special revival is allowed only in the following cases:

If the policy has not acquired any surrender value.
If the date of revival is within 3 years of lapse.

Revival by Instalment Method: The policyholder can pay the premium arrears in instalments. 'Declaration of Good Health' and medical tests (if necessary) is required. Depending on the mode of payment a down payment of the instalments is to be paid on the date of revival.

Monthly	6 months premium
Quarterly	2 quarterly premiums
Half yearly	1 half year's premium
Yearly	Half of the yearly premium

The balance arrears have to be paid over a period of 2 years along with the normal premiums.

Loan-cum-Revival Scheme: A policy loan can be availed on the date the policy acquires surrender value. The loan amount will be arrived at by including the unpaid premiums as if they had been paid. This loan is then

Survival Benefit-cum-Revival Scheme: If a survival benefit is due to be paid before the date of revival, this money can be used for revival of the policy. If the survival benefit amount is less than the premium arrears, then the balance will have to be paid out of the policyholders' pocket. Declaration of Good Health and medical tests (if required) are necessary.