Missed an LIC premium? Learn how the grace period works, what a lapsed policy means, how revival works, and how the free-look period protects new buyers.
Missing a premium date happens to many families, especially when money is tight or a reminder is missed. The good news is that an LIC policy does not end the moment a due date passes. This guide explains the safety windows built into a policy: the grace period, the revival period and, for new buyers, the free-look period.
Grace period
The grace period is extra time after the due date to pay your premium without losing cover. In the brochures we checked, including New Jeevan Anand (715) and Jeevan Labh (736), it is:
| Premium mode | Grace period |
|---|---|
| Yearly, half-yearly, quarterly | 30 days |
| Monthly | 15 days |
The grace period is counted from the date of the first unpaid premium. During this time the policy stays in force, so if a claim arises, your family is still covered. The same grace period applies to rider premiums paid with the base premium.
Single premium policies have no further premiums, so this does not apply to them.
What does "lapse" mean?
If the premium is not paid by the end of the grace period, the policy lapses. A lapsed policy is like a switched-off connection:
- Life cover stops, and so do any riders.
- A par policy stops sharing in future bonuses.
What happens next depends on how long you had paid. In plans 715 and 736, if at least one full year's premium was paid, the policy can turn into a paid-up policy with a reduced sum assured. If less than that was paid, nothing is payable. Read more in surrender value and paid-up value.
Revival: bringing a lapsed policy back
You can usually restore a lapsed policy. This is called revival.
Revival period: in plans 715 and 736, a lapsed policy can be revived within 5 consecutive complete years from the date of the first unpaid premium, but before the end of the policy term (the maturity date). Other plans may differ, so check your brochure.
What you need to do:
- Pay all the arrears of premium (every premium you missed).
- Pay interest on those arrears, at a rate LIC fixes from time to time.
- Satisfy LIC about your continued insurability, which means your health is still acceptable. This may need a declaration or, in some cases, medical reports.
What LIC can decide: LIC may revive the policy on the original terms, on modified terms, or decline. The revival takes effect only after LIC approves it and issues a revival receipt. Riders can only be revived along with the base policy.
If a policy that has not become paid-up is not revived within the revival period, it ends.
A simple example (illustration only)
Priya pays a quarterly premium of ₹6,000. She misses two quarters because of a family emergency.
- After the 30-day grace period on the first missed premium, the policy lapses.
- Some months later she wants to restart. To revive, she pays both missed premiums (₹12,000) plus interest, and submits a health declaration.
- Once LIC approves and issues the revival receipt, her full cover is back.
Reviving early is usually easier, because there is less interest and fewer health questions.
Free-look period: a cooling-off window for new policies
After you receive a new policy, you get time to read it carefully. If you don't agree with its terms and conditions, you can return it. This is the free-look period.
- In every LIC brochure we checked, it is 30 days from the date you receive the policy document, electronic or physical, whichever is earlier.
- You must return the policy and state your reasons for objecting.
What refund to expect: LIC cancels the policy and returns the premium paid, after deducting:
- a proportionate risk premium for the days you were covered (base plan and riders),
- medical examination expenses, if any, and
- stamp duty charges.
So the refund is close to, but usually a little less than, what you paid. Unit-linked plans can have different refund rules, so check the brochure for those.
Practical tips
- Opt for auto-debit (NACH) so premiums are not missed.
- Note your due dates and the last date of grace.
- If you miss a premium, act within the grace period if you can.
- Read your policy document as soon as it arrives, while the free-look window is open.
- Terms like "arrears" and "in force" are explained in our insurance glossary.
Has your policy lapsed? Contact us and we will help you check the revival steps.