Life insurance serves as a form of security for your loved ones, in the case of your death. As life is unpredictable at times, it is always better to stay prepared against any eventuality rather than take any risk. However, a life insurance plan needs to be renewed after specific periods, for it to stay in effect.
Reviving such a policy can be difficult, especially if you are not aware of the intricacies of the same. Here is a look at some of the ways in which you can renew a life insurance policy even after it has lapsed.
Ordinary revival
This is the simplest form of revival for a life insurance plan. To do this, you will have to pay off all the unpaid premiums and the interest at once. However, the company may ask you to provide a proof for good health and medical report. So, keep these documents ready if you are planning to follow this route.
Specialized revival
This particular revival allows you to pay just one outstanding premium in order to renew the policy, depending on your age. Such a revival is only possible for people who do not have the financial backing to clear all of the unpaid premiums at one go. However, even in case of the special revival, you may be asked to provide proof of health.
Instalment revival
If a person is unable to clear premiums under the ordinary and special revivals, he/she can also opt for an instalment revival. This revival allows the insured to clear the payments in a yearly, half-yearly and quarterly instalments. Under such a revival, you can take advantage of a hassle free premium payment.
Here are some things to consider before you opt for a revival of the life insurance policy.
1. You can only revive a life insurance policy if a long time has not passed since its lapse.
2. Aside from having to pay off the outstanding premiums, you will also have to pay a penalty fee, based on the time that has passed since the lapse of the plan.
3. If you are suffering from a medical condition, a proper medical report detailing the seriousness of the condition may be required while you apply for a revival.
Even though you would need to pay off all the premiums with interest, it is always better to revive a life insurance policy. However, try to avoid a lapse in the first place and pay your premiums regularly, so that you do not have to undergo the hassle of reviving the plan.
Reviving such a policy can be difficult, especially if you are not aware of the intricacies of the same. Here is a look at some of the ways in which you can renew a life insurance policy even after it has lapsed.
Ordinary revival
This is the simplest form of revival for a life insurance plan. To do this, you will have to pay off all the unpaid premiums and the interest at once. However, the company may ask you to provide a proof for good health and medical report. So, keep these documents ready if you are planning to follow this route.
Specialized revival
This particular revival allows you to pay just one outstanding premium in order to renew the policy, depending on your age. Such a revival is only possible for people who do not have the financial backing to clear all of the unpaid premiums at one go. However, even in case of the special revival, you may be asked to provide proof of health.
Instalment revival
If a person is unable to clear premiums under the ordinary and special revivals, he/she can also opt for an instalment revival. This revival allows the insured to clear the payments in a yearly, half-yearly and quarterly instalments. Under such a revival, you can take advantage of a hassle free premium payment.
Here are some things to consider before you opt for a revival of the life insurance policy.
1. You can only revive a life insurance policy if a long time has not passed since its lapse.
2. Aside from having to pay off the outstanding premiums, you will also have to pay a penalty fee, based on the time that has passed since the lapse of the plan.
3. If you are suffering from a medical condition, a proper medical report detailing the seriousness of the condition may be required while you apply for a revival.
Even though you would need to pay off all the premiums with interest, it is always better to revive a life insurance policy. However, try to avoid a lapse in the first place and pay your premiums regularly, so that you do not have to undergo the hassle of reviving the plan.
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