Insurance Policy gets a lapsed status when the premiums are not paid even after grace period. Either the purpose of insurance stops or gets reduced depending on type of Insurance plan.
In participating plans, benefits are reduced on the basis of paid up value. In ULIP plans, paid premiums move into discontinued funds but purpose of insurance i.e., death cover stops with immediate effect. In non-participating plans, purpose of insurance i.e., death cover stops.
However, these policies can be revived as per terms and conditions of policy.
Usually, a life insurance lapsed policy can be revived within 90 days. Many times, companies run special scheme to revive these policies. Companies reinstate these policies after collection of pending premium, interest and Health Declaration form. The revival conditions may differ depending upon the policies of the insurance companies.
Click here to know how to renew your lapsed Life, Health, and Motor Insurance Policies
You should be aware about the lapse status and revival of policy there are people who might take advantage of your innocence, and try to mis-sell policies by offering you to get claim money from your lapsed policies.
Mr. Navneet Chopra was mis-sold three insurance policies by someone on WhatsApp. That person gave a false assurance that Mr. Navneet could recover money from his previous lapsed policies if he purchases three new insurance policies. He was lured by such an offer and bought three policies hoping to receive the claim amount from the previously lapsed policies. He stated that he was getting constant updates from the person that he would get the claim money in some days. He waited for his claim amount for almost a year. On March 2, 2022, he contacted Insurance Samadhan for the case. We guided him and resolved his case by May 23, 2022.
We have helped 14,500+ people in resolving insurance-related cases. Contact us to get samadhan for your insurance-related issues. We are always available to help you out.
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