It is a good idea to set reminders to pay premiums for insurance policies. If the premium is not paid even after the grace period is over, then the policy lapses. This does not provide the benefits of the policy. However, you can re-enable a lapsed policy. For this, here we are telling you about the whole process.
Check the revival period
Most companies keep a period of two to three years to revive the policy after the grace period is over. This is called the revival period in the language of insurance. This information is given in the policy document. You should ensure that the policy is reactivated within the revival period itself.
Payment and Penalty
To revive the policy, the policyholder has to pay premiums for all the years since it lapsed. Also, for not paying the premium, the penalty fixed by the insurance company will also have to be paid.
In some cases, a medical check-up at the designated medical center is mandatory. In other cases, the declaration of good health is sufficient for revival.
New terms and conditions
Revised policy is like new policy. In such a situation, the insurance company can put new conditions in it. Policyholders must read these when new policy documents are received.
What to keep in mind
Revival of the policy is more economical than buying a new policy. Insurance companies run policy revival campaigns from time to time. Their purpose is to encourage people to revive the lapsed policy.