Buy a Life Insurance Plan in a few clicks
Protect your family's financial future.
Insurance and Investment in one plan.
A plan that offers immediate or deferred stream of income
Thank you
Our representative will get in touch with you at the earliest.
Features
Ref. No. KLI/22-23/E-BB/492
A policy lapse occurs when a life insurance or other insurance policy becomes inactive due to a failure to pay the required premiums on time. This results in the loss of coverage, meaning the policyholder will no longer be protected by the insurance benefits. Reinstatement might be possible, but it typically involves payment of overdue premiums and possibly meeting other conditions set by the insurer.
Life insurance often feels like one of those things you set up and forget, tucked away in the background of your financial plans. It is easy to think everything is running smoothly, but sometimes, without realizing it, you might be one step away from losing that crucial protection. The problem? It is easy for life insurance to slip through the cracks. Life happens, priorities shift, and suddenly, you find yourself in a situation where that once-solid safety net is no longer there when you need it most.
A life insurance policy lapse happens when you stop paying your premiums, causing the policy to lose its active status. Think of it as forgetting to recharge your phone; it won’t work until you top it up. Similarly, when your life insurance lapses, the coverage you once had is no longer available, leaving you and your loved ones unprotected in case something unexpected happens. The good news? Many insurers offer grace periods, giving you extra time to pay before things get serious.
A policy lapse in insurance happens when you miss paying your insurance premiums on time, plain and simple. Life gets busy, and it’s easy to overlook due dates, especially if you don’t have automated payments set up. Sometimes, financial struggles make it hard to keep up with premiums. Other times, it’s just a case of assuming you have more time than you do.
Reviving a lapsed life insurance policy doesn’t have to be stressful. Follow these easy steps to get your policy back on track:
Insurers usually provide a grace period (30 days for most policies) after the due date. If you’re still within this period, you can pay the premium without extra charges to restore your policy.
If you’ve missed the grace period, don’t panic! Life insurance policies often have a revival period, which can range from six months to five years, depending on the insurer.
Reach out to your insurance provider to discuss the revival process. They will guide you on the steps, documents required, and any applicable fees or medical check-ups.
Be prepared to clear all pending premiums, along with any late payment fees. This is usually a necessary step to reactivate your policy.
You may need to provide updated KYC documents and a health declaration or undergo medical tests if the lapse period is significant.
Some insurers offer special revival schemes with flexible payment options or discounts on penalties. Check if your insurer has such programs.
Use this opportunity to reassess your critical illness cover and ensure it still meets your needs. You might even consider adding riders for extra protection.
Set reminders or opt for auto-debit to avoid missing future premium payments and maintain your policy without interruptions.
If your life insurance policy has lapsed, don’t panic! It happens to the best of us, and the good news is that you can usually revive it. Let’s break it down into simple, easy-to-follow steps:
The sooner you act, the better your chances of reviving your policy. Most insurers allow a grace period after the policy lapses, typically ranging from 30 days to a few months. Beyond this period, reviving the policy might become more challenging or expensive.
Pick up the phone or visit your insurance provider’s nearest branch. Inform them about your lapsed policy and ask for details on the revival process. They’ll guide you through the requirements and any conditions specific to your policy.
Insurers usually offer different revival schemes, such as:
Discuss these options with your insurer and pick the one that suits your financial situation.
You’ll need to pay all the missed premiums along with any applicable late fees or interest. The exact amount depends on the duration of the lapse and your policy’s terms.
Your insurer might ask for certain documents, such as:
Ensure you provide accurate information to avoid delays.
If your policy has been lapsed for an extended period, the insurer may ask you to undergo a medical check-up. This is to reassess the risk associated with insuring you. Be prepared for this step, as the results can influence the approval of your revival request.
Once you’ve completed all the formalities, review the updated policy document provided by the insurer. Ensure all details, including coverage and premium amounts, are accurate. Keep a copy of the confirmation for your records.
Finally, set up automatic payments or reminders for your premium due dates. This way, you won’t have to undergo the revival process again. It’s a simple step to keep your policy active and your loved ones protected.
Keeping your life insurance policy active is easier than you might think! Start by setting reminders for premium due dates, whether on your phone, calendar or through email alerts from your insurer. Opt for automatic payments if possible; they take the guesswork out of remembering deadlines. If you’re going through a financial crunch, reach out to your insurance provider, who often has options like a grace period or flexible premium schedules to help you out.
At the end of the day, a policy lapse life insurance is more than just a missed payment; it’s a wake-up call to stay on top of your policy. Life can be unpredictable, but with a little planning and awareness, you can keep your policy active and continue to enjoy the security it provides. Whether it’s setting reminders, choosing flexible payment options, or simply staying in touch with your insurer, there are plenty of ways to keep your coverage intact. So, don’t let the small details slip through the cracks; your future self will thank you for them!
1
A policy lapse occurs when you fail to pay the premium within the due date or grace period, resulting in the loss of coverage and benefits.
2
The most common reasons include forgetting premium payments, financial difficulties, or lack of understanding about due dates and grace periods.
3
Set up payment reminders, opt for auto-debit options, or choose a premium schedule that aligns with your income flow to ensure timely payments.
4
The fate of your premiums depends on the policy type. There are some types of insurance policies that offer a surrender value or paid-up option, while others may not refund any amount.
5
YYes, most insurers allow reinstatement within a specific time frame, subject to conditions like overdue premium payments and possibly a medical check-up.
6
The reinstatement period typically ranges from 6 months to 2 years, depending on the insurer and policy terms.
Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors
Features
Ref. No. KLI/22-23/E-BB/2435
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
Get a Term plan that offers high coverage at low, affordable premiums
