How to Revive a Lapsed LIC Policy — Complete Guide 2026

If you fail to pay your premium within the designated **Grace Period** after the official due date, your insurance policy status changes to 'Lapsed'. LIC provides the following standard grace periods:

• Yearly, Half-yearly, or Quarterly Modes: 30 calendar days from the due date.
• Monthly Modes: 15 calendar days from the due date.

Warning: Once a policy lapses, your active life risk cover is suspended. If any unfortunate event occurs while the policy is in a lapsed status, the nominee will not receive any death claim benefits.

Yes, absolutely! LIC allows policyholders to reinstate their lapsed plans. Under standard terms, you can revive your lapsed policy anytime **within 5 consecutive years** from the date of the First Unpaid Premium (FUP).

In addition, LIC periodically launches Special Revival Campaigns where they offer significant concessions on late fees and interest penalties to make reinstatement affordable.

To initiate the policy revival process, you generally need to organize the following documentation:

• Original Policy Bond: The official contract document (or a certified duplicate copy if lost).
• Revival Application Form: The appropriate LIC declaration form (e.g., Form 680 or Form 512).
• Personal Statement of Health (DGH): If the policy has been lapsed for over 6 months, a signed declaration of good health is mandatory.
• Medical Examination Reports: Required if the lapse duration exceeds 2 years or if the Sum Assured falls under high-risk parameters.
• Accumulated Premium & Late Fees: The total sum of unpaid premiums along with interest charges must be paid upfront.

The final cost to revive your policy is the sum of **all pending premiums** plus **compound interest** applied by LIC. The standard interest rate ranges between **9% to 10% per annum**, calculated daily on the outstanding amount.