An LIC policy can be revived within 5 years from the date of first unpaid premium. Here's the full process, fees, and conditions you need to know.
When Can a Policy Be Revived?
- Within 2 years: standard revival — no special requirements
- 2–5 years: allowed but with stricter conditions — usually need a medical test and higher interest
- Beyond 5 years: policy cannot be revived and is treated as fully lapsed (irrevocably)
What You Need to Pay
To revive a lapsed LIC policy you typically pay:
- All unpaid premiums (back-dated to the date of first unpaid premium)
- Interest on arrears (currently around 8–9% simple, compounding yearly)
- Revival fee (small, plan-specific)
- Medical costs (for policies over a certain Sum Assured or if revival is late)
Documents Required for Revival
- Original policy bond
- ID and address proof of policyholder
- Recent passport-size photos
- Medical examination report (for high sum assured or late revival)
- Declaration of good health (standard revival form)
Why Revival Beats Surrender
Once a policy is surrendered, you get only a small surrender value (and lose bonus + future cover). Revival, by contrast, fully restores the policy to its original state — bonus continues to accrue, loan facility comes back, and death cover resumes from the revival date. The medical confirmation is to protect LIC's risk pool, not to penalise you.
The Process — Step-by-Step
- Visit your LIC servicing branch (or the branch that issued the policy)
- Ask for Form 5810 (Revival Application)
- Fill the form, attach KYC + photos + policy bond
- Undergo medical test (if required) and submit the report
- Pay arrears + interest + revival fee
- Receive a "Revival Intimation" from LIC — policy is now active again
💡 Don't delay: revival becomes harder and more expensive the longer you wait. The interest on arrears and potential medical cost make early action worthwhile.
What If Revival Isn't Possible?
You have two options:
- Make the policy paid-up: stop paying premiums; reduce Sum Assured to a fraction of the original; maturity still comes (smaller), tax-free
- Surrender: get the cash value — usually a loss unless you've completed most of the term