If your life insurance policy has lapsed, you never again appreciate the financial protection that it offers. A life insurance policy lapses when you neglect to pay the premium within the time frame. With that, the advantages connected to the policy also lapse.
A lapsed policy implies that you and your wards are presented to the hazard that an unexpected occasion may bring. Since you are not qualified for any cover advantage after the policy lapse by, it beats the specific motivation behind benefiting life insurance.
You can, nonetheless, revive your life insurance policy and reestablish the advantages that you and your nominees are qualified for. The Revival of a life insurance policy relies upon different factors, for example, the span between the date of policy lapse by and the date when the demand for recovery is made and the kind of approach.
An endowment plan, for example, can be revived if the procedure is started inside 2 years from the last due date of the unpaid premium, gave that your life insurance plan is inside the policy time frame. You would need to pay the unpaid premiums (alongside intrigue gathered in the approach pass period).
How to Revive a Lapsed Life Insurance Policy?
The process of revival of a lapsed life insurance policy is subject to the time elapsed between the date of policy lapse and date of the request for revival.
Within 6 Months From The Date Of Lapse
In the event that you apply to revived your approach inside a half year from the date it got passed, the procedure is basic. You can contact your insurance company and pay off the late premiums alongside any intrigue, and resuscitate your approach. This should be possible online moreover.
After 6 Months From The Date Of Lapse
On the off chance that it’s been over a half year from the date of policy pass when you apply for revival, you would need to pay the late premiums, alongside enthusiasm at a rate between 12-18% of the top-notch sum. The penalty is likewise exacted relying upon the insurer’s norms, policy lapse time, and type of policy
In the second case, the revival of your insurance policy is at the circumspection of your back up plan. Your life insurance company may adjust the first terms and states of the arrangement, increment the premium, or request a wellbeing endorsement. It might likewise approach you to go for review medical tests, keeping in mind the end goal to evaluate your present wellbeing condition
Therefore, it is wise and profitable to revive your policy as soon as possible, to avoid penalties and loss of benefits.
Life insurance is an important tool to avail in your investment portfolio, as it safeguards the financial future of your family in your absence. Make sure to pay your premiums on time, and even if you miss one, revive your policy to ensure you and your loved ones enjoy continued protection always. Opt for the direct debit facility to ensure that you never miss a due date!