LIC Rings the Revival Bell: Lapsed Policies Get a Second Chance with Big Fee Discounts

Image Source: The Tribune

Life Insurance Corporation of India (LIC) has launched an ambitious nationwide "Special Revival Campaign" to help policyholders reinstate their lapsed insurance policies. Rolling out today, August 18, 2025, this initiative comes as a boon for individuals who, due to unforeseen circumstances, missed premiums and allowed their policies to lapse. The campaign, running through October 17, 2025, offers significant concessions, making it easier and more affordable to restore risk coverage and ensure family financial security.

Key Highlights of the Campaign

The revival drive is open from August 18 to October 17, 2025, providing LIC customers a two-month window for action.
It covers individual lapsed policies that are eligible for revival, specifically non-linked plans that have not yet matured.
Policyholders can avail up to 30% concession on late fees, capped at Rs.5,000 depending on the premium amount.
For micro insurance policies, LIC is offering a complete 100% waiver on late fees, making revival especially affordable for low-income customers.
Policies must be within the premium-paying term and not matured, and can be revived within five years from the date of first unpaid premium, subject to LIC's terms and conditions.

Revival Eligibility & Terms

All non-linked and micro insurance plans are part of the campaign.
Policies must be in a lapsed state during the premium paying term, and the policy shouldn’t have reached completion or maturity.
MEDICAL/HEALTH requirements: Policyholders must satisfy normal medical and health criteria for revival; there are no concessions here.
The offer extends to policies where premiums weren’t paid due to financial constraints, changes in personal circumstances, or simple oversight.

Benefits and Rationale

Restoring a lapsed policy reactivates all insurance protections for the policyholder and their beneficiaries.
The drive reinforces financial security for families with affordable re-entry into the insurance system.
LIC emphasizes the importance of keeping policies active to safeguard the future of loved ones.

Late Fee Concession Structure

For all Non-Linked Insurance Plans:

Up to Rs.1,00,000 premium: 30% concession, maximum Rs.3,000
Rs.1,00,001 to Rs.3,00,000 premium: 30% concession, maximum Rs.4,000
Above Rs.3,00,001 premium: 30% concession, maximum Rs.5,000

Micro Insurance Policies: 100% waiver on the late fee

How to Proceed

Policyholders should contact their nearest LIC branch or visit LIC’s official website (licindia.in) for further details.
Review policy eligibility and complete required medical formalities.
Pay overdue premiums and the reduced late fee to reactivate coverage.

Why LIC’s Revival Matters Now

The campaign is designed to help policyholders who have lost coverage due to missed payments, offering a second chance at protection without bearing the full penalty cost.
Current economic conditions and the ongoing importance of financial protection have made this revival window a strategic support initiative for families across India.

Closing Insight

LIC’s special campaign is an opportunity for millions to reclaim peace of mind and solid financial security for their futures. Taking prompt action within the campaign’s timeframe can ensure continued protection and restored benefits.

Source: Business Today, Rediff Money, NewsPatrolling