FAQs – Lapsed Policy
Policy Lapsation or a Lapsed Policy means that Life Cover and benefits payable under the policy have stopped or are reduced. However, the earnings from your invested money will be paid to you as per the conditions mentioned in your policy document.
Below are the lapsation details for different premium payment options:
One Pay Option:
Here, the premium is paid for the entire term of the policy at policy inception. Hence, in this payment option, the question of lapsation does not arise.
Regular and Limited Pay Option:
For the Regular Pay option, the payments are made throughout the policy term. Whereas, for the Limited Pay Option, the premiums are paid for a limited duration as mentioned in the policy document.
If your premium is not paid before the premium due date, you are allowed a grace period for making the payments. You get a grace period of 30 days for half-yearly and yearly payments, and 15 days for monthly payments.
Your regular/ limited premium policy lapses if the premium is not paid on the due date or thereafter during the grace period.
Yes, your Life Cover and other benefits will be available during the grace period. However, if the premium is not paid within the grace period, your policy would lapse or become paid-up**.
**A paid-up policy is a policy that acquires a reduced amount of Sum Assured, called the paid-up value in case of lapsation.
There is no provision to pay any amount in a lapsed policy, unless specifically mentioned in the policy contract.