RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

Policy Revival Period in Insurance: A Complete Guide

down-arrow
Policy Revival Period in Insurance: A Complete Guide
February 16, 2024

Table of Content

 

These days, with the growing uncertainties of life, it is immensely important to get yourself insured. A term life insurance plan with a good life cover ensures your family won’t have to cope with financial struggles if you die an untimely death. A life insurance plan needs you to pay premiums in a pre-defined schedule, against which the sum assured is paid to your nominee in the event of your death within the policy term. However, the availability of term policy benefits depends on whether you pay the premiums on time and complete the entire schedule.

A term policy requires the policyholder to pay the premiums in a chosen schedule of annual, half-yearly, quarterly or monthly payments. The premium has a due date on which the payment has to be made. Based on the payment, the policy gets renewed for the next phase. Here are some important points that need to be noted.

  • What happens when the premium is not paid on the due date?

The premium payments in a term policy have to be made on due dates as per schedule for a successful renewal. However, if the policyholder misses the expiry date, an extension is available. Beyond the window, the policy might lapse.

  • What is a grace period in a term policy?

A grace period in a term policy is the extended period available to pay the premium if you miss the due date. In an annual, half-yearly or quarterly premium payment schedule, the grace period is 30 days from the original due date. For a monthly schedule, it’s 15 days.

  • What happens when you default even in the grace period?

A grace period is an extra time available to pay the premium after the due date. If the policyholder fails to make the payment even in this window, he/she will bear the consequences. In some cases, the premium can still be paid along with late fees or a penalty. In the worst case, the policy might get cancelled.

  • What if you fail to renew the term policy on time?

A term policy offers you a pure life cover where the death benefit is paid in exchange for premiums. Hence, if you fail to renew on time, the policy gets cancelled and the life cover ceases to work. No death benefit is available anymore and the premiums already paid are not returned. It’s indeed a major loss when the policy is a Rs 1 crore term plan and you end up losing its benefits.

  • What is a revival of a lapsed term policy?

A revival of a lapsed policy means reinstating the term policy to get back the benefits. It is the process in which the policy gets back into operation even after default payment and cancellation. However, this remains a choice of the said insurance company based on its terms and conditions.

  • How can you revive a lapsed policy?

Some insurers allow the renewal of a lapsed policy. For this, a few documents like health certificates and KYC proofs have to be submitted. Also, certain fees are payable to revive a lapsed policy. The list includes late penalties, interests accrued for the default period and the payment of the outstanding amount of unpaid premiums. You might also face a new set of terms and conditions imposed by the insurer.

  • What is the revival period in life insurance?

A revival period in life insurance refers to the time band allowed by the insurance company to recover a lapsed policy. Typically, this period ranges between 3-5 years and varies across insurers. The start of the period is from the due date of the first unpaid premium.

  • How to avoid missing policy renewals?

You can avoid failing premium due dates or consequent policy lapse by maintaining payment through the following options:

  • Create a calendar for your premium payments and set an alert.

  • Set a standing instruction for your bank to deduct premiums through ECS.

  • Choose auto-pay options through your ATM card or UPI.

  • Choose a policy that’s easily affordable for you.

Related Articles

ARN - ED/01/24/7493

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

Why Is Insurance Necessary?

Why Is Insurance Necessary?

Learn the essentials of what is insurance, its types, benefits, and how it protects your finances. Get insights into life and general insurance policies today.

How to Take a Loan Against Life Insurance Policy?

Who is the Insurer and Insured?

Blue Chip Fund

"Blue chip fund invests in stocks / shares of well-established companies with credible financial performance, market capitalization & steady payout of dividends."

Blue Chip Fund
Difference between Insurance and Assurance – Understand the key differences Previous
What is the CIBIL score and why does it matter? Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Popular Search

Popular Searches