LIC Revival Late Fee & Penalty Calculator

Estimate the late fee (interest) and total amount payable to revive your lapsed LIC policy. Updated for 2026 rules.

Quick Summary: LIC Policy Revival

To revive a lapsed LIC policy, you must pay all overdue premiums plus interest (usually 9.5% p.a. compounded half-yearly). You can generally revive a policy within 5 years from the date of the First Unpaid Premium (FUP).

Interest Rate: 9.5% p.a.
Revival Window: 5 Years from FUP
Grace Period: 15 / 30 Days

Revival Details

*Your regular single installment premium (excluding GST).
*The date on which the first unpaid installment was due.
*Applicable during official LIC Special Campaign periods (Max waiver тВ╣3,000).

Revival Quotation

Total Payable Revival Amount
тВ╣ 15,726
Includes All Premium Arrears + Net Interest
Missed Dues
3
Total Arrears
тВ╣ 15,000
Late Fee (9.5%)
тВ╣ 726
Important Note: Late fee interest is calculated at 9.5% p.a. compounded half-yearly per IRDAI standards. Exact branch quotation may exhibit minor day-basis variations. For policies lapsed over 6 months, Form 680 (Declaration of Good Health) is usually required.

The Cost of Delay: How Penalties Multiply

Compound interest escalates rapidly the longer a policy remains lapsed. Here is an illustrative comparison for a тВ╣10,000 Half-Yearly premium:

Delay Period Unpaid Dues Total Premium Approx Late Fee Total Amount Payable
6 Months 1 Installment тВ╣ 10,000 тВ╣ 475 тВ╣ 10,475
1 Year 2 Installments тВ╣ 20,000 тВ╣ 1,400 тВ╣ 21,400
2 Years 4 Installments тВ╣ 40,000 тВ╣ 5,200 тВ╣ 45,200
3 Years 6 Installments тВ╣ 60,000 тВ╣ 11,500 тВ╣ 71,500

3 Critical Pro-Tips for Policy Revival

1. Leverage Special Campaigns

LIC frequently launches Special Revival Campaigns offering up to 30% discount on late fees. Waiting for a campaign can save substantial penalties on multi-year lapses.

2. Revive Within 6 Months

Reviving within 6 months typically requires no medical checkups, preserving full cover with just a simple payment and zero friction.

3. Verify Auto-Cover Protection

Policies with 3 to 5 years of completed premium payments often enjoy Auto-Cover protection, keeping life insurance active during short lapses.

Frequently Asked Questions

What is the interest rate charged for LIC policy revival in 2026?

The standard late fee interest rate charged by LIC is <strong>9.5% per annum</strong>, compounded half-yearly. It is calculated on each missed premium installment from its respective due date.

What is the maximum time period to revive a lapsed LIC policy?

Under current IRDAI regulations, you can revive a lapsed traditional policy within <strong>5 consecutive years</strong> from the date of the First Unpaid Premium (FUP).

How does the Special Revival Campaign concession work?

During official LIC Special Revival Campaigns (typically launched 1-2 times a year), LIC offers concessions ranging up to 30% on late fees (capped at тВ╣3,000 to тВ╣4,000 depending on premium size).

Do I need a medical test to revive my policy?

If revived within 6 months of lapse, generally only a Declaration of Good Health (DGH / Form 680) is required. For lapses beyond 6 months or high Sum Assured, medical tests may be mandated.