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Home >Money >Calculators >DYK: Reviving a lapsed policy has become easier

If you have a lapsed insurance policy, there is some good news. Insurers are making it easy for policyholders to revive their lapsed policies. A policy is considered lapsed when you skip paying your premium on the due date or within the grace period that usually extends up to 30 days. You typically get an outer limit of two years to revive the lapsed policy. In recent months, three more insurers have launched initiatives to help policyholders revive their lapsed insurance plans. Earlier in November, Reliance Life Insurance Co. Ltd also offered revival on easy terms (http://goo.gl/34jm48). While Tata AIA Life Insurance Co. Ltd waives penalty and medical check-ups, Bajaj Allianz Life Insurance Co. Ltd offers similar benefits but with caveats and Canara HSBC Oriental Bank of Commerce (OBC) Life Insurance Co. Ltd has created an online platform for policyholders to revive their policies.

Tata AIA Life and bajaj allianz life’s offer

According to the Tata AIA Life offer, if your policy lapsed between January 2012 and December 2013, you can revive your policy at no extra cost. Insurers typically charge interest for reviving a lapsed policy. In addition to this, insurers also seek a declaration of good health and depending upon your medical information, they may also subject you to medical tests. Tata AIA has waived both these conditions for its policyholders. Bajaj Allianz Life, on the other hand, is offering to revive traditional policies, such as endowment, money-back and whole life plans, with a 50% discount on the interest applicable upon revival. On unit-linked insurance plans no interest is applicable. You will need to give a declaration of good health and if you are healthy enough for the insurer, you will not have to undergo medical tests. For those over 55 years, medical tests will be mandatory. Both these campaigns will carry on till 31 March 2014.

Canara HSBC OBC Life’s offer

Canara HSBC OBC Life does not offer a waiver but the ease of reviving the policy online. Policyholders need to get themselves registered on the website, www.canarahsbclife.com. When you log in, the system will show all the policies held by you from the company. It will also tell you if the policy is lapsed and the amount that you need to pay to revive it. This amount will include the interest that you need to pay for revival. You will need to make a declaration of good health online. The insurer may ask you to undergo medical check-ups depending on your health condition. If you are healthy enough, you will just need to make the payment online. The insurer will revive your policy the next working day if your policy lapsed in the last six months; for older policies the insurer can take up to five days. Offline process can take up to 10 days.

Insurers are encouraging customers to revive policies in order to improve their business. You should make use of these offers.

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