What will happen to your policy if the premium of LIC policy is not paid on time. What happens if you stop paying premium in LIC policy. Let us understand about this what happens to our policy if we stop paying premium due to any reason.
If you want to read this article in Hindi then click here.
Many times you are short of money, due to which you are not able to pay the premium of LIC. But we have seen many such policy holders who have completely stopped the premium of their policy. They don’t know anything about all this.
Let us explain to you with the help of this article what happens if the premium is stopped. Can you start the policy again after the premium has stopped? Let’s know.
If you pay the premiums on time, all the benefits are passed through the policy. Insurance risk cover is also there as per the policy.
But if you have stopped paying the premium then your risk cover is no more. Apart from this, other benefits also do not remain. Let us understand it one by one.
These are some things, which should be understood that if you stop paying premium then what happens with LIC policy.
1. Grace Period remains.
There is a due date for payment of premium of LIC policy. Due date has been given for making premium payment. If you do not pay the premium on the due date, there is a grace period of 30 and 15 days from then on.
The grace period means that you can pay the premium within the next 30 days. LIC does not charge any late fee for paying the premium within the grace period.
2.Late fee after Grace Period
If you have not paid LIC premium within the grace period. So late fee will be taken in your premium. The longer you delay, the more your Late Fee will have to be paid.
Therefore it is better to pay the premium within the grace period itself.
3. Insurance is not covered.
As per the policy, the amount of insurance cover you have taken ceases. If you do not pay the premium, your policy does not have insurance cover.
God forbid if anything happens to you at such a time, then your family will not get the benefits of insurance. The amount you have paid in LIC will be the same and your family will get the bonus with it.
Hence the premium should be paid.
4. Policy Reviveal
If you have not paid the premium of the policy even after the grace period, then the policy will have to be revised. Meaning, after the grace period, you get time for 6 months in which you can restart the policy by paying only the late fee.
But if 6 months have passed and you have not paid the premium yet, then the policy will have to be revive.
To revive the policy, you will have to go to the LIC branch office. Your Health Report, Revival Form, Revival Quotation, Premium and some other documents have to be submitted together in the branch office.
It’s a very long process. For this your insurance agent is required. It is better to pay the premium before that.
5. Policy will not even be Revive
If you have not paid the premium for 5 years. So after that your policy will never be revived again. LIC has given you 5 years to revive your policy and make it operational.
But even if this time is over, then you can never start this policy again.
6. Maturity of the Policy
If you have paid the premium of LIC policy for at least 3 years, then your policy will be maturity and you will get money along with bonus.
But if you have paid premium for 1 year or 2 years then nothing will be available.
And yes, according to the new update, all the policies have been done after February 2020. In those policies, there is maturity of the policy by paying premium for only 2 years.
Conclusion
If you do not pay the premium of the policy, there are several types of losses. But through this article you can understand that premium must be paid. Hope you got some information from this article, so that you can pay your policy premium on time.
Will update this article in future also according to new information. Follow on social media and subscribe now to get new updates.
Also read these
- क्या में बिना LIC एजेंट के LIC पालिसी ले सकता हु?
- टॉप 5 तरीके ऑनलाइन LIC Premium भुगतान करने की
- 10 युक्तियाँ एक अच्छी पॉलिसी धारक बनने की
If you like this information, then do share it with your friends on social media!