how-to-revive-a-lapsed-life-insurance-policy

How to Revive a Lapsed Life Insurance Policy in India?

Learn how to revive a lapsed life insurance policy, including timelines, costs, documents needed, and steps to restore coverage without a new policy.

Written by : Knowledge Centre Team

2025-11-23

878 Views

8 minutes read

Exit Pop Up

Live Life More Confidently

Get best insurance from our experts

Name is required Name should be Valid
Mobile Number is required Mobile Number should be Valid
DOB is required DOB should be Valid
Annual Income is required
Please tick to proceed further.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

Purchasing a life insurance policy early in life offers financial protection to your family in your absence. It provides your nominees a death benefit in the future to help them fulfil their dreams. In order to achieve this, life insurance plans require policyholders to pay a stipulated premium as per a frequency that is agreed at the time of purchasing the policy for the entire duration. It is important to make premium payments regularly to ensure you continue to enjoy policy benefits. However, there can be an instance when you fail to pay the premium on time. This can have severe repercussions on your term insurance policy leading to it being terminated.

Secure Your Family’s Future with the Right Life Insurance Plan

Please enter correct name Please enter the Full name
Please enter valid mobile number Please enter Mobile Number
Please enter valid email Please enter Email
Consent is required

Enter OTP

An OTP has been sent to your mobile number

Didn’t receive OTP?

Application Status

Name

Date of Birth

Plan Name

Status

Unclaimed Amount of the Policyholder as on

Name of the policy holder

Policy Holder Name

Policy No.

Policy Number

Address of the Policyholder as per records

Address

Unclaimed Amount

Unclaimed Amount
Error

Sorry ! No records Found

.  Please use this ID for all future communications regarding this concern.

Request Registered

Thank You for submitting the response, will get back with you.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

What happens when you do not pay the premium on time?

Both term insurance plans as well as life insurance plans provide you a life cover in exchange for the premium paid for the desired policy term. If you forget to pay the premium on the specified date due to any circumstances beyond your control or because you do not wish to continue with the policy, a grace period is provided. This can range anywhere from 15 days to 30 days depending on your insurer and policy guidelines. While a grace period of 15 days is applicable for policies with a monthly payment mode, you can avail up to 30 days of grace on all other payment frequencies including yearly, half-yearly and quarterly.

A grace period is an extension provided by the insurer post your policy due date to help you pay your premium so that you can revive your insurance plan and continue to avail the coverage. However, if the premium payment is not made by the insured even during this grace period, the policy becomes null and void. The insurance company will not provide you coverage, even if you paid previous premiums diligently. Your insurance plan benefits no longer apply and your policy is officially considered lapsed.

When does an insurance policy lapse?

Depending on the plan that you have opted for, the time when you policy stops becoming operational may differ. Let us take a look:

  • Unit-Linked Insurance Plan (ULIP): Life insurance plans such as ULIPs come with a compulsory 5 year lock-in and if you fail to pay premiums during this time, your policy might lapse. The accumulated amount is moved to a discontinuance fund with up to Rs 6000 levied as a charge for discontinuing your policy. Failure to make premium payment after the 5 year window leaves you with the option to either surrender your ULIP or revive it. Some insurers also allow you to go for policy modification and convert it to a paid-up plan with a lower sum assured than earlier.
  • Term insurance plans: A traditional insurance plan such as a term insurance policy is deactivated in the event of non- payment of premium as soon as the policy acquires a surrender value. Paid-up policies continue to stay functional albeit with a reduced sum assured.

Lapsed policies do not qualify for any of the insurance benefits associated earlier. Your dependants would receive no compensation from the insurance company in the event of your death if your policy is not valid anymore.

How can you revive a lapsed policy?

The Insurance Regulatory and Development Authority of India have directed insurance providers to allow policyholders to revive a lapsed policy within duration of two years from the time it is deactivated. This rule is however dependent on your policy being active for three years since the time of purchase. The earlier you opt for policy revival, the lesser penalty you end up paying. Ideally, reinstating your life insurance policy within 6 months of its lapse is a good idea.

Post this period, not only do you have to pay the premium overdue for the period, but also a penalty ranging anywhere from 12 to 18% on the total premium paid till date. Your insurer might ask you to produce a certificate to confirm your current health or undergo a health-check-up. Your premium may also be increased.

Paying the premium of life insurance plans regularly before the due date is the easiest way to keep your policy in force and safeguard your family’s financial future. Consider Canara HSBC Life Insurance’s Promise4Growth Plus plan that combines a life cover with your investment goals.

You can choose from 4 portfolio strategies that allow you the choice of 7 different funds in tune with your risk appetite to grow your wealth. Save tax on your premium along with loyalty additions and wealth boosters and fund your child’s education or your retirement alongside.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.

Recent Blogs

What is a Trust in Life Insurance? Complete Guide
01 Apr '26
34 Views
7 minute read
Learn what a trust in life insurance is, how it works, and how it provides tax savings, faster claim payouts, and financial protection for beneficiaries.
Read More
Life Insurance
What is Conditional Assignment in Insurance Policy?
01 Apr '26
84 Views
6 minute read
Understand conditional assignment in insurance, including its meaning, benefits, examples, and when it becomes effective.
Read More
Life Insurance
Which Government Life Insurance Schemes are Best in India?
01 Apr '26
106 Views
7 minute read
Explore government life insurance schemes in India, their benefits, eligibility, premiums, and how they secure financial protection for families.
Read More
Life Insurance
What is Keyman Insurance? Meaning & Benefits
01 Apr '26
46 Views
10 minute read
What is Keyman Insurance? Learn how it works and why businesses use it to protect against financial loss from losing key employees.
Read More
Life Insurance
What is a Rebate in Insurance and How Does It Work?
01 Apr '26
340 Views
8 minute read
Learn what a rebate in insurance means, how it works, and the rules you should know before buying an insurance policy.
Read More
Life Insurance
What Is an In-Force Policy in Insurance and Why It Matters?
31 Mar '26
57 Views
6 minute read
Learn what an in-force policy in insurance means, how it works and why maintaining an active policy is important for financial protection.
Read More
Life Insurance
What is Basic Premium in Life Insurance and How Does It Work?
25 Mar '26
102 Views
6 minute read
Learn what basic premium in life insurance means, how it is calculated, and why it matters when choosing the right life insurance policy.
Read More
Life Insurance
What is Net Premium in Insurance and Why is It Important?
25 Mar '26
107 Views
7 minute read
Learn what net premium in insurance means, how it is calculated, and why it plays a key role in determining policy costs.
Read More
Life Insurance
Who is an Insurance Agent? Role & Responsibilities Explained
18 Mar '26
102 Views
8 minute read
Learn who an insurance agent is, the role of an insurance agent, and how they help you choose the right insurance coverage and manage policies effectively.
Read More
Life Insurance

Life Insurance - Top Selling Plans

We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.

Family Shield: Enhanced Protection

iSelect Smart360 Term Plan
  • 3 Plan options
  • Life cover till 99 years
  • Steady income benefit
  • Block your premium at inception

Start Young, Pay Less, Stay Secured

Young Term Plan
  • Life cover till 99 years
  • Coverage for spouse
  • Block your premium rate
  • Covers 40 critical illness

Fixed Returns, Zero Risks & Worries

iSelect Guaranteed Future Plus
  • 4 Plan options
  • Life cover + Guaranteed benefits
  • Accidental death benefit
  • Premium protection cover