Life Insurance Policy Lapsed? Here's How to Restore It and Why It Matters
Your Money
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Moneycontrol•27-01-2026, 15:44
Life Insurance Policy Lapsed? Here's How to Restore It and Why It Matters
- •Life insurance policies lapse when premiums are not paid on time, even after a grace period (15-30 days depending on payment frequency).
- •A lapsed policy means no coverage; claims are rejected, and long-term financial benefits are lost.
- •Impact varies by policy type: Term insurance terminates completely, traditional savings policies might become reduced paid-up, and ULIPs retain fund value but incur charges.
- •Most lapsed policies can be revived within 3-5 years by paying outstanding premiums with interest, and sometimes a medical check-up.
- •Keeping policies active is crucial for financial security; updating contact details and timely payments prevent lapses.
Why It Matters: Timely premium payments are vital to maintain life insurance coverage and ensure family financial security.
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