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Rules for LIC Policy Lapse

Rules for LIC Policy lapse

In general the lapse is defined as the steady fall from a place. When it comes to the LIC lapse, then it means that there is a fall in the company’s performance or something in connection with the performance. It may be either a financial lapse or the performance lapse.

It is also said in the LIC that there may be many lapses in the future which means there may be an increased ratio in the policy lapse of the company.

When there is a possibility of a lapse in your policy? The policy will be active till we pay the premiums properly during the payment period. You can pay premiums thirty to thirty one days after the end of the payment date and this is called as grace period. Suppose if you fail to pay your premium even during this period (grace period), then it is said that your policy is lapsed. This means the policy is canceled by itself. The simple concept behind this is if you don’t pay then you don’t use. Suppose if there is cash value, then till the account becomes empty the premium is paid from the cash value. So you have to pay attention to the grace period.

If you have not noticed the end of the grace period then you will lose the insurance policy that you have taken up. There is a slight consideration; the LIC checks on your previous policies and if there are too many lapses then your policy is canceled automatically.

Thus to prevent this situation it is important to pay the premium of the correct date or at least before the grace period ends else the lapse period will begin and you will lose the policy. This will help the people to pay the premiums properly!

Comments

Hi, I have a question in a recent case of a friend. I heard that my friend's father was hospitalized early this year and died in May-11 of natural causes. We came to know that he had a Life insurance policy on his name but he had not paid the premium due in Jan-11, while in his hospitalised state. Is there any possibility of my Friend making the claim with respect to the insurance policy? I would appreciate your input. If its positive, I would be happy for my friend as they are from a poor family and need help. Thanks!

Dear sir, My name is aneesh. i have a policy with lic, Jeevan ankur which payment due date is 28 Jan 2014. some reasons i can not paid the amount of the said policy till date. Now i want to pay the amount, what are the formalities to paid the said amount?

My LIC policy is Lapsed And I have Paid Almost 30000/-as a Premium in 3 years. And I have not paid the last 3 premium. Pls let me know is it possible to renew my policy or How do I get my Back money which I have already paid.

R/sir, i have opended LIC's Jeevan Varsha policy 6747655496 for Rs. 50,000/- on 14-04-2009 by name of me Yerikalapudi Govardhana Rao S% Y.saibabu sincerely i paid Rs, 7000/- to LIC branch due to some family domestic problems i have not continue the policy now i am studying final degree i need of money in this connection i request to advise i will get any returned amount from LIC regarding this policy and whom to i appraoch further in this matter The following details are given below for your kind perusal and further necessary help My Name: yerikalapudi Govardhanan Rao Policy NO: 6747655496 Branch code 688 Guntur. A.P Address Y.Govardhana Rao s% Y.saibabu,D No: 5-3-12,2/2, Brodiepet, Guntur-2 cell NO; 9291669225

how can I found,my policy is lapse or not? if yes then the amt invested in it is refundable? if yes then what is processure? I pay half yearly 3 instolment....

how can I found,my policy is lapse or not? if yes then the amt invested in it is refundable? if yes then what is processure? I pay half yearly 3 instolment....

my brother policy beared monthly premium though ecs directly to bank. once a ecs got returned and then lic did not send any next ecs to bank for premium payment, after 4 month my brother died. lic refuse to pay the benefit arguing that the policy has lapse. My querry us "does the policy lapse within 4 months from the date of premium not paid, and why lic did not send ecs for subsequent month for premium collection?"

Hi friends I am certified Lic insurance agent for any query or any suggestions please free to contact me on my email Adress gavlih4@gmail.com 100% satistfaction garuntee

Dear Sir, I have one LIC policy, which i had taken to save tax. Now i am settled in US and don't want to continue this policy. I have paid 4 times yearly-premiums. Can you pls. suggest, how can i get my money back. I don't want this policy anymore.

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