How to revive old LIC policy and convert to paid-up?

Investments LIC
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I have an old LIC policy where I stopped paying premiums a few years ago. I want to know my options. How can I revive it? And what is the process to convert it to a paid-up policy?

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It’s important to understand that reviving a policy and it becoming a “paid-up” policy are two different outcomes for a policy on which you’ve stopped paying premiums. You take active steps to revive a policy to restore its full benefits. In contrast, the policy automatically becomes paid-up if you do nothing, provided you have paid premiums for a minimum period.

Reviving a Lapsed LIC Policy vs. Converting to Paid-Up
Reviving a Lapsed LIC Policy vs. Converting to Paid-Up1506×286 50.6 KB

Understanding the Difference: ‘Revival’ vs. ‘Paid-Up’

I was discussing this with an LIC agent for a friend’s old policy. The agent clarified that these are opposite choices. ‘Revival’ is the process where you pay all the pending dues to bring the policy back to its original ‘In-Force’ status, restoring the full sum assured and other benefits. A ‘Paid-Up’ policy, on the other hand, is the status a policy automatically gets when you stop paying premiums (after 2-3 years); it remains active but with a reduced sum assured.

How to Revive Your Old Lapsed Policy

The agent explained the process for my friend to revive his policy. He had to visit his LIC home branch and request a ‘revival quotation’. This document showed the total amount of all his unpaid premiums plus the applicable late fees. After he made this payment and submitted a ‘Declaration of Good Health’ form, his policy was successfully revived to its full original value and became eligible to earn future bonuses again.

What Happens If You Choose Not to Revive (Paid-Up Status)

My friend then asked what would happen if he chose not to revive the policy. The agent checked the policy’s status and confirmed that since my friend had paid premiums for five years before stopping, the policy had already converted to a ‘Paid-Up’ status automatically. He did not need to do anything to “convert” it. The policy will now continue with a reduced sum assured until the maturity date, and it will not earn any more bonuses, but the value it had already accumulated is safe.

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