My LIC policy got lapsed because of non payment of premium – What is renewal process ?

POSTED BY envynicky ON May 12, 2014 11:29 pm COMMENTS (5)


I have a Jeevan Saral policy registered in 2011 through a relative but now I understand that he has not paid last 4 premiums and now if I have to continue policy, I have to pay penalty to keep it alive. Please help me out with following inputs

1. What is the fine rate I am looking at, is it 8% or does it vary?

2. do I get benefit in terms of Interest and Bonus for the 2 years whose premiums have been delayed?

3. Do I need to visit the same branch where policy has been registered? I know that it cannot be done online

4. For how long does LIC considers a policy lapsed before it cancels it out and there is no recovery procedure?

Please help me out in resolving this issue.



5 replies on this article “My LIC policy got lapsed because of non payment of premium – What is renewal process ?”

  1. ashalanshu says:

    Dear Nikhil, w’d you like to amputate a finger today or an arm tomorrow? choice rests with you.



  2. envynicky says:

    Hi Raja,

    This the problem there is no surrender value, it’s ZERO for the initial 3 years and hence the concern, I am looking at loss of 18K. can you please share inputs on the 4 points mentioned above, if you have info around it.


  3. Raja says:

    Consider it destiny that the policy is lapsed. Just take whatever surrender value you get and exit. Do NOT consider such policies as a means of getting life insurance. Take a term plan and invest money in better investment plans

  4. envynicky says:

    Hi Ashal,

    I have not made up my mind whether to start or leave the policy to expire. I am just working out possibilities post which I would make up the mind.

    At best I can say is, I don’t want to lose the initial premium paid and I need a decent avenue of investment + Insurance which this policy can offer. I know returns are not great from it.

    Please share your thoughts on this point as well as 4 specific info’s I have requested above.


  5. ashalanshu says:

    Dear Nikhil, why do you want to restart this policy?



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