What is LIC Policy Renewal?

LIC policy renewal refers to the process of keeping the LIC policy active by paying the due premium amount on or before the due datePolicyholders are required to make periodic premium payments to maintain continuous coverage under the policy, ensuring that the life insurance benefits and financial security provided by the policy remain intact. 

LIC offers various methods for policyholders to renew their policies, including online and offline options, and policyholders need to adhere to LIC insurance renewal deadlines and grace periods to prevent the policy from lapsing, which can lead to a loss of coverage, policy benefits and potential financial repercussions.

How to Renew Your LIC Policy From Policybazaar?

There are multiple ways to make LIC premium payments through the Policybazaar platform. Following are the options one can follow to renew your LIC policy from Policybazaar:

If accessing from a desktop,

Go to the top of this page and submit your LIC Policy Number and Date of Birth as per the current Policy documents to generate a QR code. Then scan the QR code to get directed to Policybazaar's in-app Policy Renewal page.

If accessing from Mobile,

You can enter your phone number and continue receiving a link to the payment gateway via text message & on WhatsApp.

On getting redirected to the LIC Policy renewal detail page on the Policybazaar app, review the premium payment information and proceed to choose your preferred payment mode to pay the dues and complete the process.

Alternatively,

Step 1: Visit the official website of Policybazaar and click on Renewal. 

Step 2: Select ‘Life Renewal’ from the Renewal drop-down list.

Step 3: Choose “LIC” from the list of insurer options provided on the screen.

Step 4: Submit your Policy Number and Date of Birth mentioned in your Policy documents.

Step 5: Review the policy renewal information and proceed to choose the preferred payment mode and pay your renewal dues to complete the process

Note: Post successful payment, the amount gets settled with LIC in 3-5 business days.

Why Renewing Your LIC Policy is Important?

Renewing your LIC policy on a timely basis offers several benefits, such as

• Uninterrupted Coverage:

  Timely renewing your LIC plan offers uninterrupted coverage and ensures that in any unfortunate event, your family can have financial independence. Your family will receive a death benefit on your death, which would help them to fulfil their future needs.

• Peace of Mind:

  When you know that you and your family’s financial needs are taken care of by your LIC plan, you can easily concentrate on other things. By paying a minimum premium amount, you can be sure that you can achieve all your future financial goals with your policy.

• Savings and Investments:

  Many LIC policies offer savings and investment components. Renewing your policy allows you to continue building these assets, potentially leading to substantial returns over time.

• Tax Benefits

  LIC policies offer tax advantages. LIC Insurance Renewal ensures you can continue to avail of these tax benefits, helping you save on income tax and secure your financial future simultaneously.

• Long-Term Goals

  Many LIC policies have maturity benefits that provide a lump sum or periodic payouts upon reaching a certain age. Renewing ensures you meet these long-term financial objectives.

• Avoids Policy Lapses

  Failure to renew on time can lead to policy lapses. Reinstating a lapsed policy may involve paying overdue premiums and undergoing a health check. Thus, making timely LIC policy renewal is the more convenient and cost-effective choice.

• Policy Modifications

  LIC of India Renewal provides an opportunity to adjust your policy to align with changing life circumstances. You can increase or decrease coverage, change premium payment frequencies, or add riders for enhanced benefits.

What Happens If I Do Not Renew My LIC Policy?

Not renewing your LIC policy on time can cause several inconveniences to you as well as your loved ones, such as:

• Loss of Coverage: Not renewing your LIC policy will result in lapsation of your policy, resulting in the loss of life insurance coverage. In such a case, your beneficiaries will not receive any financial support.

• No Policy Benefits: While the policy has lapsed, you will not be entitled to any benefits or payouts, including maturity benefits or any riders or additional coverage options you may have had.

• Loss of Bonuses and Accumulated Benefits: If your policy had been in force for a considerable period, it might have accrued bonuses and other benefits. Allowing the policy to lapse could result in the loss of these accumulated benefits.

• Premium Increase: When you reinstate a lapsed LIC policy, you may need to pay a higher premium than what you were paying before the lapse. This higher premium is often determined based on your age and health at the time of reinstatement.

• Reviving your policy with Penalties: LIC typically provides a grace period during which you can reinstate your lapsed policy by paying the overdue premiums and any associated penalties or interest. The longer you wait to reinstate, the more you may have to pay in penalties.

Every LIC Policy comes with a grace period, wherein the policyholder is given 30 days to pay their due premiums. However, in case the policyholder is unable to pay the premiums within the grace period, then the policy will lapse. Once your policy is lapsed, you will no longer be able to avail any benefits of your plan.

Fortunately, a lapsed LIC policy can be revived within a period of 5 consecutive years from the date of the first unpaid premium.

How to Revive Lapsed LIC Policy?

To revive the lapsed LIC Policy, you need to visit the official website of LIC of India. From there, you can pay the outstanding renewal premium, with interest (compounding half-yearly) at the rate fixed by the company. 

Note: The company reserves all the right to accept at original terms, at modified at revised terms or decline the revival of a discontinued policy. The revival of the discontinued policy shall take effect only after the same is approved and accepted and the company issues a revival receipt.

Summing it up:

Timely renewals of your LIC plan help you to avail all the benefits offered by your plan. One can renew their policy online or offline at their convenience. Not just this, the company also allows you to revive your lapsed policy within 5 years of lapsation, and once the policy is revived, the benefits from the policies are also reinstated.

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