LIC's revival drive for lapsed policies: Who should act and why it matters
New Delhi, Jan 5, 2026
LIC offers limited-time relief to restore life cover in case premiums were missed earlier
Life Insurance Corporation of India (LIC) has launched a special two-month campaign to help policyholders revive individual life insurance policies that have lapsed due to missed premium payments, according to PTI. The initiative, which runs from January 1 to March 2, aims to bring policyholders back under insurance cover by offering significant concessions on late fees.
The move comes at a time when many households have struggled with irregular income, leading to disruptions in long-term financial commitments such as life insurance.
What does the LIC revival campaign offer?
According to PTI, the revival drive applies to all non-linked individual insurance policies that are eligible for revival. The key concessions include:
· Up to 30 per cent discount on late fees, subject to a maximum cap of Rs 5,000
· 100 per cent waiver of late fees for micro insurance policies, aimed at making risk cover affordable for low-income policyholders
· Eligibility for policies that lapsed during the premium-paying term and have not yet completed the policy term
LIC clarified that while late fee concessions are available, there are no relaxations on medical or health-related requirements wherever these are applicable.
Who should consider reviving a lapsed policy?
The campaign is targeted at policyholders who were unable to pay premiums on time due to unfavourable personal or financial circumstances, PTI reported. These could include job loss, medical emergencies, or temporary cash flow stress.
Reviving a lapsed policy restores full insurance cover, which is critical for families that depend on the policy payout for financial protection. Once a policy lapses, the risk cover typically stops, even though premiums may have already been paid for several years.
LIC has reiterated that keeping a policy in force is essential to receive the full benefits promised under the contract.
Why reviving an old policy can make financial sense?
LIC has advised policyholders that reviving an existing policy is often better than buying a new one. Older policies may carry advantages such as:
· Lower premiums based on the policyholder’s younger age at entry
· Fewer exclusions compared with newer policies
· Continuity of long-term savings and protection goals
Revival also helps policyholders avoid the cost and uncertainty of fresh underwriting, especially at an older age or with new health conditions.
How to approach the revival decision?
Policyholders are advised to check whether their policy is eligible for revival and assess whether the premium commitment remains affordable. While the late fee concessions make revival cheaper during the campaign period, the long-term premium obligation continues.
LIC stated that the initiative reflects its intent to support policyholders who wish to stay protected and ensure financial security for their families, PTI reported.
[The Business Standard]
