Missed your term insurance payment? Don’t panic - you still have time to fix it.
Every insurer offers a grace period to make your payment and keep your policy active.
Even if your plan
has lapsed, you can revive it within 2 years by following a simple process - no need to
buy a new policy.
This guide explains the difference between renewal, grace period, and revival, how to
avoid losing
coverage, and what documents are needed to bring your policy back to life.
Renewal Vs Revival - What’s The Difference?
| Term |
Meaning |
Eligibility |
Refunds |
| Renewal |
Paying your next premium on time to keep policy active |
Before due date or within grace period |
Not applicable |
| Revival |
Reinstating a lapsed policy after grace period expires |
Within 2 years of lapse |
Coverage resumes after approval |
Grace Period Rules
| Payment Frequency |
Grace Period |
Coverage Status |
| Annual/Semi-Annual |
30 days |
Full coverage continues during grace period |
| Monthly |
15 days |
Full coverage continues till grace expiry |
If premium not paid within grace period - policy lapses automatically.
Revival Window - Restarting Your Lapsed Policy
You can revive a lapsed term plan within 2 years from the last unpaid due date (varies
by insurer).
Steps to revive:
- Contact insurer or PolicyBachat for revival form.
- Pay pending premiums + small interest (typically 8-10% p.a.).
- Submit updated health declaration.
- Complete medical test (if requested).
- Receive revival confirmation - policy reactivated.
Example - How Revival Works
Let’s say your premium was due on 10th March.
Grace period ends 9th April.
If you pay before that - simple renewal.
If you pay on 15th May - revival with interest and possibly fresh medical check-up.
Types Of Policy Status
| Status |
Description |
| Active Policy |
All premiums paid, full benefits active |
| In Grace Period |
Premium delayed but coverage still valid |
| Lapsed Policy |
Grace period over, no coverage |
| Revived Policy |
Coverage restarted after paying dues |
Benefits Of Reviving A Policy
- Keeps your old premium locked - no re-underwriting needed.
- No need to go through a fresh application.
- Retains riders and benefits.
- Maintains original tax benefits and continuity.
- Ensures family protection resumes immediately.
Local Insights
- % of policies revived annually: 82%.
- Avg. revival time: 6 days.
- Common reason for lapse: Missed auto-debit or income delay.
- Top insurers with easy revival process: HDFC Life, Max Life, ICICI Prudential.
Required Documents For Revival
- Policy number & revival form
- Self-declaration of good health
- ID proof (PAN/Aadhaar)
- Pending premium receipts or payment
- Medical reports (if required)
Medical Test Rules For Revival
| Time Since Lapse |
Medical Requirement |
| <6 months |
Usually not required |
| 6-12 months |
Basic medical check |
| >12 months |
Full medical underwriting re-applies |
Alternatives If Revival Not Possible
- Buy a new term plan (fresh underwriting).
- Choose limited-pay or smaller cover if affordability is the issue.
- Switch to annual payment to avoid monthly misses.
- Set reminders or auto-debit through ECS.
Tips To Avoid Lapses In Future
- Enable auto-pay or standing instructions.
- Maintain sufficient account balance near due date.
- Use PolicyBachat reminder service for renewals.
- Update contact info to receive insurer notifications.
- Pay annual premium in advance when possible.
Tax Benefits On Revived Policies
- Section 80C: Still applicable for revived policy premiums.
- Section 10(10D): Death benefits remain tax-free.
- Note: If policy is revived after 2 years, tax benefits may restart from that
financial year.
FAQs
What happens if I miss a term insurance premium?
Coverage continues during grace period; lapses after that if unpaid.
Can I renew after grace period ends?
Yes, via revival - within 2 years of lapse.
Is there any penalty for revival?
Only small interest on overdue premiums.
Will my premium increase after revival?
No, same as original unless age or medical risk changes.
Do I lose benefits if policy lapses?
Temporarily, yes - resumes after revival.
Are medical tests mandatory for revival?
Depends on time elapsed since lapse and policy size.
Can I revive partially (for riders only)?
No - full policy revival is mandatory first.
Can I cancel my policy instead of reviving?
Yes, but pure term plans offer no refund; revival is better value.
How long does revival take?
Typically 5-10 working days after payment and medical approval.
Can NRIs revive from abroad?
Yes - pay online and submit scanned forms via email.
Can I revive multiple lapsed policies?
Yes, individually for each insurer with separate payments.
Do revived policies have waiting periods?
No new waiting period if revived within allowed timeframe.
Does revival affect claim eligibility?
No, once revived, full benefits restore immediately.
Can I change payment mode at revival?
Yes, you can switch from monthly to annual, etc.
What if I fail to revive within 2 years?
You’ll need to buy a new policy - fresh medicals & higher premium.
Customer Reviews
- “Missed premium - revived in 4 days with no issues.” - Rohit Iyer, Chennai
- “PolicyBachat helped me with step-by-step revival.” - Anjali Sinha, Delhi
- “Didn’t lose coverage; process was simple online.” - Rajesh Menon, Kochi
- “Great info on grace period and revival window.” - Kavita Bhat, Mumbai
- “Glad I didn’t cancel - saved my tax benefits too.” - Arun Das, Bengaluru
- “Excellent article - explains renewal vs revival clearly.” - Nisha Thomas,
Hyderabad
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