LIC Lapsed Policy Revival Guide 2026: Costs, Documents, Timeframes
The revival amount is outstanding premiums plus interest, typically around 9.5% per annum on arrears. No separate penalty applies for most policies - the interest is the cost.
The 5-year revival window
LIC permits revival within 5 consecutive years from the first unpaid premium (FUPR). Beyond that, revival is impossible and only surrender remains. Policies lapsed 0-6 months usually qualify for simple revival with no medical examination.
Why revival beats surrender
Reviving a lapsed LIC policy restores your original premium rates, keeps your accumulated bonus intact, and protects tax benefits under Section 80C. Surrendering or buying fresh means higher premiums at your current age and a new waiting period on riders.
Online vs branch revival
Online: LIC customer portal, Policy Services, Revival Request, then pay outstanding premiums plus interest. Branch: submit the revival form and documents in person - useful when medical requirements complicate the case.