Term insurance is one of the most affordable ways to ensure financial security for your loved ones. However, if you miss the premium payment or fail to meet the renewal requirements, your policy may lapse. It is important to know how to revive a lapsed term insurance policy to ensure you maintain coverage without significant delays. In this article, explore the key factors involved in reviving a lapsed term insurance policy and the steps to take to regain your coverage.

• A term insurance policy lapses due to non-payment of premiums or failure to renew within the grace period.
• To revive a lapsed policy, contact the insurer, pay outstanding premiums, and submit required documents.
• Necessary documents for revival include proof of identity, policy details, health declarations, and medical reports if needed.
• Not reviving the policy results in loss of coverage, increased premiums, missed benefits, and potential difficulty in securing a new policy.
• Act promptly to avoid financial risks and maintain protection for your loved ones.
• Reviving a lapsed policy ensures continued financial security for your family’s future.

A term insurance policy typically lapses when the policyholder misses paying the premium within the grace period. The grace period usually lasts for 30 days, but it may vary depending on the insurance provider. During this time, your policy remains active, and you can pay the premium to avoid lapsing.

Reasons a term insurance policy may lapse:

• Non-payment of premiums: Missing premium payments is the most common reason for policy lapses.
• Expiry of the grace period: If the grace period expires without payment, the policy is considered lapsed.
• Failure to renew the policy: Some term policies may require renewal at regular intervals.
• Incorrect or outdated details: If your payment details are incorrect, or the insurer fails to process payments on time, it may result in the policy lapsing.

Reviving a lapsed term insurance policy is possible, but the process depends on several factors, including the time elapsed since the lapse and the policy’s terms. It is important to act quickly to avoid complications.

Steps to revive a lapsed term insurance policy:

• Contact the insurer: Reach out to your insurance provider as soon as you realise your policy has lapsed. They will provide the necessary guidance on the revival process.
• Pay the outstanding premium: In most cases, paying the outstanding premium along with any late fees is required to revive the policy. Some insurers may allow reinstatement with a reduced coverage amount if you miss multiple payments.
• Undergo medical tests (if required): If a significant amount of time has passed since the policy lapsed, the insurer may require you to undergo medical tests before reinstating the policy.
• Submit a revival application: Fill out the necessary paperwork or application for policy revival provided by your insurer. The application may ask for details such as your health condition, premium payments, and reasons for the lapse.

When reviving a lapsed term insurance policy, insurers typically ask for specific documents to process your request efficiently. Having all the necessary paperwork in place will help expedite the revival process.

Common documents required include:

• Proof of identity and address: A government-issued ID (Aadhar card, passport, etc.) along with a utility bill or bank statement for address verification.
• Policy details: Your policy number, premium receipts, and any correspondence with the insurer regarding the lapse.
• Health declaration: Depending on the time since lapse and your age, the insurer may require a health declaration or medical records.
• Medical reports (if applicable): If the policy lapsed for more than a certain period (usually one year), a medical check-up or reports may be requested to assess your current health condition.

Neglecting to revive a lapsed term insurance policy can result in several risks and disadvantages, especially in terms of financial security for your family. A lapsed policy means that your coverage is no longer valid, which may leave your loved ones vulnerable in case of an unfortunate event.

Disadvantages of not reviving the policy:

• Loss of coverage: The primary consequence is the loss of life insurance coverage, leaving your family without the necessary financial protection.
• Increased premiums: If you choose to purchase a new policy after a lapse, you may face higher premiums due to your age or any changes in your health status.
• Missed benefits: Some term policies offer benefits such as riders, bonuses, or tax exemptions, which could be forfeited if the policy is not revived.
• Health risk: If your health deteriorates after the policy lapses, it may become difficult or expensive to secure a new policy or revival.

Reviving a lapsed term insurance policy is not a complicated process, but it is crucial to act quickly to ensure your coverage continues uninterrupted. Keep track of your premium payments, understand your policy terms, and reach out to your insurer promptly to prevent any issues. Reviving your term insurance policy will help you maintain financial security for your family, safeguarding their future even in your absence.