The company has acknowledged the troubles an individual goes through while paying premium charges offline and introduced a more user-friendly and digital method of making LIC premium payments.

Suppose an individual fails to pay the premium charges within the given timeline or the grace period, then the policy lapses. But an individual can efficiently restore the policy by paying the due premiums along with minimal late fee charges. The introduction of the online method has efficiently increased the credibility of the services provided by the company.

Grace Period of LIC Premium Payments

There are many reasons for not being able to pay the premium charges within the due date. The company understands the various reasons for the inability and provides a grace period for all the LIC policies’ premium payments.

The policyholders get the option of choosing the term of premium payments, which includes annually, half-yearly, quarterly and monthly, and the due date is fixed accordingly. If an individual fails to pay the premium further during the grace period, then the policy lapses and the financial coverage. In the grace period, the financial coverage subsists, and the individual gets a chance to pay the premium charges after the due date.

The grace period allotted under LIC policies is 30 days if the policyholder makes the LIC premium payments annually, half-yearly and quarterly. If a policyholder pays premium charges monthly, then the grace period reduces 15 days from the last due date.

What are Late Fee Charges for LIC Policies?

If a policyholder is unable to pay the premium charges within the extended timeline that is the grace period, then the unpaid policy will get lapsed. The individual will need to renew the policy if they want to attain financial coverage by the policy. To continue the policy, the customer needs to pay the unpaid premium charges and late fee charges.

The policyholder can renew their policy within a minimum of 6 months to a maximum of 5 years starting from the first unpaid due date. According to the different policies, the late fee charges rate includes 6%, 7.50%, and 9.50%. The high-risk policies have more significant late fee charges, and low-risk policies have lesser late fee charges. The charges increase in terms of increasing months the policy remains unpaid. Some conditions concerning late fee charges are:

• 1^st month is counted in 45 days
• The 2nd month is counted from 45days to 75 days and goes respectively.

How to Check LIC Policy Due Date and Revival Quotation Online?

Before paying the premium charges, the first step is to double-check the due date of the policy for which an individual is about to pay and get the knowledge about the revival quotation, i.e., the amount required to be paid to revive the policy.

To check the due date and Revival Quotation, an individual must log in to their respective accounts in the official customer portal of the insurance company. The steps to logging in to the account are given further in the article. If an individual is new to online services, they need to register themselves with the required credentials to access the online services. 

After successfully logging in to the online account, the customer can readily check the due date, revival quotation of the lapsed policy, policy details, grace period, late fee interests, and much more available under the section of online services. After checking the due date and revival amount, the customers can easily renew their policy at their convenience.

LIC Online Premium Payment after Due Date

If an individual fails to pay their due premium charges within the required timeline, which includes the grace period, the LIC policy lapses. But the individual can easily pay their unpaid premium charges along with late fee charges and can easily revive the lapsed policy. There are two methods in which a LIC policyholder can make their late premium payments within the online process. The methods are mentioned below, including steps to follow for making the payments:

1. Through Customer Portal

   1. For Registered Users:

      • Visit the customer portal of the insurance provider. 
      • Then click on “Registered User” present on the centre menu.
      • Fill in required credentials like user id, password, and date of birth to log in.
      • After logging in, go to "Self" or "Policies".
      • Then click on "Online Premium Payment".
      • Then choose the option of "Renew/ Revival".
      • Choose the mode of payment.
      • Check the registered mail id.
      • Download the payment receipt.

   2. For New Users:

      Suppose an individual is new in executing the online services and does not have an online account in the customer portal and wants to renew their policy online. In that case, the following steps will be helpful:

      • Visit LIC’s customer portal from their official website. 
      • Click on “New Users”
      • Fill in the required details like policy number, date of birth, registered mail id and phone no., and gender.
      • Click “Proceed”
      • After registration, click on "Policies".
      • It will show the status of the lapsed policy
      • Then click on "Online Payment".
      • Select “Renewal/Revival”
      • Check the mail id.
      • Print the payment receipt.

2. Direct Payment

   This process does not require any online registration to an account in the customer portal.

   • Visit the official website of the Life Insurance Corporation of India.
   • Click on “Online Premium Payment” present at the left-side menu of the home page.
   • Click “Pay Direct”
   • Select “Renewal Premium/Revival”
   • Select “Proceed”
   • Fill in the required credentials like policy number, date of birth, registered mail and phone no.
   • Fill in the premium particulars.
   • Select the mode of payment.
   • Download and print the e-receipt.

Revival Options of LIC Policy

For the convenience of LIC policyholders, the company has introduced five ways of paying the unpaid premium charges and aids in reviving the lapsed policy. For various reasons, the customers cannot pay the premium charges within the given timeline and options of revival schemes help the customers access the financial coverage. The options are:

1. Ordinary Revival Scheme:

   This revival scheme offers the chance to the policyholders of paying the unpaid premium charges along with late fee interests. Under this scheme, the policyholders may be asked to submit Form no. 680 and medical certificate is required to check the health of the life assured/policyholder.

2. Revival through Instalment:

   This scheme can be utilized by the policyholders who are unable to pay the premium charges along with interests at one go. The customers can pay the premium charges for revival in instalments as per their convenience. Some conditions under this scheme are:

   • If an individual selects the monthly mode of payment, then they must pay six months premiums.
   • For quarterly mode, the clients must pay two-quarters of premiums.
   • For the half-yearly mode, the clients must pay premium charges for one half-yearly term.
   • For yearly mode, the policyholder must clear half of the premium charges for one annual payment.

   The balance should be paid in instalments for the upcoming two years, along with the regular premium charges.

3. Revival Scheme with Loan Options:

   The scheme allows the policyholders to access loan options to revive the policy if a surrender value is assigned during the revival. The premium charges, which are paid till the date of revival, are checked in order to decide the loan amount. If the loan amount is not sufficient for premium charges, then the excess has to be paid by the customers. In case of excess, the balance will be delivered to the customers.

4. Revival Scheme with Survival Benefit:

   In money-back policies, the policyholders get a survival benefit amount upon maturity. The amount is paid to the policyholders after a specific time span. The clients can easily use this survival benefit in order to revive the policy. But this scheme is only applicable if the revival is processed after possession of survival benefit. 

5. Special Revival Scheme:

   In this scheme, the date of commencement can be shifted to a term where the relevant policy does not lapse just before the date of revival. A medical certificate, DGH or other documents may be required in this scheme, just as the Ordinary Revival Scheme. The conditions under the revival scheme are:

   • This revival scheme is only eligible once in the entire policy term.
   • This scheme can be executed within a maximum of three years of the policy lapse.
   • Surrender Value should not be present in the policy.

The Final Verdict

LIC has been maintaining its high credibility and performance in the customer services domain. The insurance company has been acknowledging the difficulties of its customers. To avoid the penalties, it is recommended to regularly pay the premiums or avail of the different payment benefits that the respective policies offer. However, the revival process under LIC is not a prolonged method, and the customers can effortlessly restore their lapsed policy in a tech-abled and hassle-free way.

LIC Resources