How to Revive a Lapsed LIC Policy Complete Guide

Step-by-step revival process, documents required, interest charges, and time limits — everything you need to know.

✍️ By Team Lic Calculator 🔍 Reviewed by Haresh Hirapara (20+ yrs in Insurance) 📅 Updated: August 2026 ✅ Expert Verified
📌 Quick Answer

To revive a lapsed LIC policy: visit your LIC branch, pay all unpaid premiums + interest (~9.5% p.a.), and submit a health declaration. Revival must be done within 5 years of the first unpaid premium. For lapses under 6 months, only a health declaration is needed. For longer lapses, a medical examination may be required.

📋 Table of Contents
  1. What is a Lapsed Policy?
  2. Types of Revival — Ordinary vs Special
  3. Step-by-Step Revival Process
  4. Documents Required
  5. Interest Charges — How Much Extra?
  6. Should You Revive or Surrender?
  7. Frequently Asked Questions

What is a Lapsed Policy?

A LIC policy becomes "lapsed" when you stop paying premiums. Here's the timeline:

StageWhat Happens
Premium Due DatePremium is due but not paid
Grace Period (30 days)LIC gives 30 days to pay (15 days for monthly mode). Policy remains active during this period. No penalty.
After Grace PeriodPolicy lapses. All benefits stop — no life cover, no bonus accrual, no maturity.
After 5 Years of LapsePolicy cannot be revived. Only surrender (if eligible) is possible.

⚠️ Critical: When a policy lapses, you lose life cover immediately. If anything happens during the lapsed period, the nominee gets nothing (unless the policy has paid-up value). Revive your policy as soon as possible.

Types of Revival

✅ Ordinary Revival

When: Lapse period up to 6 months

Health: Simple Declaration of Good Health (DGH) — just a form, no medical tests

Cost: Unpaid premiums + interest (~9.5% p.a.)

Processing: Usually within 3-7 days

🏥 Special Revival

When: Lapse period 6 months to 5 years

Health: Full medical examination required (ECG, blood tests, etc. depending on age and SA)

Cost: Unpaid premiums + interest (~9.5% p.a.)

Processing: 10-30 days (depends on medical reports)

Step-by-Step Revival Process

1
Visit Your LIC Branch

Go to the branch where your policy is serviced. Carry your policy bond and ID proof. You can also initiate online through the LIC Customer Portal.

2
Fill Revival Application (Form 680)

Fill the revival form with your policy number, personal details, and reason for lapse. This form is available at the branch.

3
Submit Health Declaration / Medical

Lapse < 6 months: Simple DGH form (no tests).
Lapse > 6 months: Medical examination at LIC-approved panel doctor (free of cost — LIC bears the expense).

4
Pay All Dues

Pay all unpaid premiums + interest (~9.5% p.a.) + any late fees. You can pay by cheque, demand draft, or online through the LIC portal. The branch will give you the exact revival amount.

✓
Policy Revived!

Once LIC approves, your policy is fully active again — life cover resumes, bonus accrual restarts, and all benefits continue as if the policy was never lapsed.

Documents Required for Revival

DocumentOrdinary RevivalSpecial Revival
Original Policy Bond✅ Required✅ Required
Revival Form (Form 680)✅ Required✅ Required
ID Proof (Aadhaar/PAN)✅ Required✅ Required
Declaration of Good Health✅ Required—
Medical Examination Report❌ Not needed✅ Required
Premium Payment (all dues)✅ Required✅ Required

Interest Charges — How Much Extra?

LIC charges approximately 9.5% per annum compound interest on unpaid premiums:

Lapse PeriodUnpaid PremiumsApprox. InterestTotal Revival Cost
6 months₹50,000~₹2,400~₹52,400
1 year₹50,000~₹4,750~₹54,750
2 years₹1,00,000~₹14,400~₹1,14,400
3 years₹1,50,000~₹28,800~₹1,78,800
5 years (max)₹2,50,000~₹63,000~₹3,13,000

*Based on ₹50,000 annual premium, approximately 9.5% p.a. compound interest. Actual interest may vary. Contact your LIC branch for exact revival amount.

Should You Revive or Surrender?

Almost always — revive. Here's why:

✅ Revive — Benefits
  • Life cover restores fully
  • All accumulated bonus preserved
  • Future bonus accrual continues
  • Full maturity amount at term end
  • Tax benefits under 80C resume
❌ Surrender — Losses
  • Get only 30-50% of premiums paid
  • All accumulated bonus lost
  • Life cover gone permanently
  • Need new policy at higher premium (older age)
  • Tax deductions may be reversed

💡 Expert Tip (Haresh Hirapara): In 20+ years, I've seen many policyholders regret surrendering lapsed policies. The revival interest (~9.5%) is much lower than the cost of buying a new policy at an older age. If your policy has completed 5+ years, the accumulated bonus alone is often worth more than the revival interest. Always revive if possible. If you can't afford all dues at once, ask your branch about instalment revival options. Consult your LIC branch for the exact revival amount.

Frequently Asked Questions

How do I revive a lapsed LIC policy?+
Visit your LIC branch with the policy bond and ID proof. Fill Form 680, submit a health declaration (or undergo medical for lapses over 6 months), and pay all unpaid premiums plus approximately 9.5% interest. The policy is revived within 7-15 working days after approval.
What is the time limit to revive a lapsed policy?+
5 years from the date of the first unpaid premium (FUP). After 5 years, revival is generally not possible. LIC occasionally runs special revival campaigns with relaxed rules. Revive as early as possible to minimize interest charges.
How much interest is charged for revival?+
Approximately 9.5% per annum compound interest on all unpaid premiums. For a 2-year lapse with ₹50,000 annual premium, interest is approximately ₹14,400. Contact your LIC branch for the exact revival amount as rates may vary.
What is the difference between ordinary and special revival?+
Ordinary revival (lapse under 6 months) requires only a health declaration form — no medical tests. Special revival (6 months to 5 years) requires a full medical examination. The cost (premiums + interest) is the same for both. Special revival takes longer to process due to medical report evaluation.
Can I revive my LIC policy online?+
Partial online revival is available through the LIC Customer Portal (licindia.in) and the LIC app. You can pay the revival amount online, but health declarations or medical reports may need branch submission. For simple revivals (under 6 months), online processing is usually sufficient.
What if I don't revive my lapsed policy?+
If you don't revive: (1) If 3+ years premiums were paid, you can surrender for the surrender value. (2) If less than 3 years were paid, the policy becomes void and all premiums are lost. (3) After 5 years of lapse, revival is not possible. You lose all bonus, life cover, and tax benefits. It is almost always better to revive than surrender.
⚠️ Disclaimer

This article is for educational and informational purposes only. LIC-Calculator.com is not affiliated with LIC of India. Interest rates and revival procedures are approximate and may change. For the exact revival amount and process, contact your LIC branch or call 1800-2579 (toll-free).

This is not financial advice. Please consult a certified financial advisor before making decisions about your insurance policy.

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