What is LIC Policy Revival?
LIC policy revival is the process of restoring a lapsed LIC policy back to its full active status. When you stop paying premiums, your policy may lapse after the grace period. To bring it back to life — and restore all the benefits, bonuses and life cover — you need to apply for revival within a specified time window.
How is the Revival Cost Calculated?
Revival Cost = Unpaid Premiums + Interest (8.5% p.a. compound) + Late Fee + Medical Cost
The interest is calculated on the unpaid premium amount from the due date of the first unpaid premium up to the date of revival. Medical examination is required if the policy has been lapsed for more than 6 months.
LIC Revival Time Window
| Plan Type | Standard Revival Period | Extended (with conditions) |
|---|
| Endowment plans (714, 715, 720, 721, 736, 745) | 2 years from lapse | 5 years (with special approval) |
| Whole-life plans (715, 745, 149) | 2 years from lapse | 5 years (with special approval) |
| Money-back plans (720, 721) | 2 years from lapse | 5 years (with special approval) |
| Term assurance plans (e.g., 814, 915) | 2 years from lapse | Not applicable |
| Pension plans (e.g., 818, 848) | 2 years from lapse | 5 years (with special approval) |
* Conditions may apply. Check your policy document or contact LIC for exact revival window for your plan.
Step-by-Step Process to Revive an LIC Policy
- Check eligibility — confirm the policy is within the revival period (2-5 years from lapse).
- Visit your LIC branch or login to lic.in → Customer Portal → Policy Revival.
- Fill Form 3665 (Revival Application Form) or submit online.
- Undergo medical examination (if required) at an LIC-approved diagnostic centre.
- Pay the revival amount — unpaid premium + interest + medical cost + late fee.
- Wait for approval — LIC reviews your application and medical report (7-30 days).
- Policy is revived — your policy is back in force, full benefits restored.
Documents Required for LIC Revival
- Original policy bond / document
- ID proof (Aadhaar / PAN / Passport)
- Address proof
- Medical examination report (if gap > 6 months)
- Form 3665 (Revival Application)
- Proof of income (salary slip / ITR) — for high-value policies
- Cancelled cheque / bank details for payment
Revival vs Surrender — Which is Better?
If you have a lapsed LIC policy, you generally have two options:
- Revive — pay the revival cost and continue the policy until maturity. You get the full maturity benefit, all bonuses and life cover. Best for long-term goals.
- Surrender — exit the policy and receive the surrender value (much lower than the maturity). You lose all future bonuses and life cover. Use only if you no longer need insurance.
In almost every case, revival is the better option because you recover your full investment with bonuses. Surrender should be the last resort.
What Happens If I Don't Revive the Policy?
- After the grace period (15-30 days from premium due date), the policy lapses.
- After 2-3 years of unpaid premiums, the policy becomes a paid-up policy with reduced sum assured.
- If you don't revive within 5 years, the policy becomes void and you only get the surrender value (if any).
- You lose all bonuses, FAB and life cover from the date of lapse.
Don't delay revival: The longer you wait, the more interest you have to pay. If the revival period expires, you may lose the entire policy.
Frequently Asked Questions
What is the interest rate for LIC policy revival?
LIC currently charges around 8.5% per annum compound interest on unpaid premiums for revival. The rate is set by LIC and may change over time.
How long can I wait to revive my LIC policy?
Most LIC plans can be revived within 2 years from the date of lapse. Some plans allow revival up to 5 years with special approval and additional conditions.
Is medical test required for LIC revival?
Yes, if the policy has been lapsed for more than 6 months, LIC requires a fresh medical examination. The cost is borne by the policyholder.
Can I revive an LIC policy online?
Yes, through the LIC customer portal at lic.in. Login → Customer Services → Policy Revival. You can pay online and submit the medical report later.
What if I miss the revival deadline?
If you cannot revive within 5 years, the policy becomes void. You can only claim the surrender value (if available). You lose all bonuses, FAB and life cover.
Does revival affect my bonus?
If you revive within the revival period, your policy is restored to its full status. You will continue to receive the simple reversionary bonus from the date of revival, but you will lose the bonus that would have been declared during the lapsed period.
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