What do you mean by revival?

1 : an act or instance of reviving : the state of being revived: such as. a : renewed attention to or interest in something. b : a new presentation or publication of something old.

What is revival policy?

Insurance companies provide an option of reactivating the lapsed policy, within a specific period of time post the grace period. ... Description: During the revival period, the policy is reinstated on the basis of certain conditions. In one case, the policy holder needs to pay the interest along with the unpaid premium.

What are the other methods of revival of lapsed policy?

A lapsed policy can be revived under the revival scheme by shifting the original date of commencement by the period of maximum two years. Under the Money Back Plan, policyholders have to bear policy preparation charges and stamp fee.

What if I missed my LIC premium?

If you do not pay the premium of your LIC policy on time or within the provided grace period, then your policy lapses. However, you can revive your lapsed policy within policy term subject to the formalities of revival that should be observed.

What does reduced paid up mean?

If the policyholder does not want to continue paying premiums but wants the cover to continue, then he can opt for the paid-up option whereby the sum assured is reduced and the future premiums are not payable. However, the policyholder will lose the rider benefits if he opts for the Reduced Paid-up option.

What is paid up status?

A paid-up policy is one that requires no further premium payments and continues to provide benefits till maturity. 2. A policy can be converted to a paid-up policy once it acquires a surrender value which is typically after 2-3 annual premiums are paid for traditional plans.

How is paid up value calculated?

Paid-up value is calculated by multiplying the original sum assured and the ratio of the number of premiums paid to the number of premiums payable. Let us consider that you pay the Rs 25,000 annual premium on a quarterly basis, and the sum assured is Rs 5 lakh for a policy term of 20 years.

What is paid up insurance option?

Paid-up life insurance is an option that allows you to keep a whole life insurance policy in force without paying any premiums for a while, or permanently. ... If you die your family will get the original death benefit, less the amount that was deducted from the cash value to pay the premiums.

What is the difference between cash value and death benefit?

The cash value of a life insurance policy equals the total amount of premiums paid minus the cost of insurance and other charges assessed by the carrier. ... Any remaining cash value left once the insured dies either gets added to the death benefit or is forfeited to the insurance company.

What is paid up value in share?

The paid up value is the actual amount paid by the shareholder for one share. For example, Face value is Rs. 10, Rs 2 on application Rs 2 on allotment hence the paid up value is Rs 4 per share. The Difference money Rs. 6 is called unpaid up value.

What happens to a paid up policy?

A life insurance policy in which if all the premium payments are complete and the insured is free of all payment obligations, the policy stays intact until insured's death or termination of the policy is called paid-up policy. Description: Paid-up policy falls into the category of traditional insurance plans.

What happens to the cash value after the policy is fully paid up?

What happens to the cash value after the policy is fully paid up? The company plans to use the cash value to pay premiums until you die. ... The company could require you to resume paying premiums, or reduce the amount of the death benefit to an amount that the remaining cash value will support.

Can a paid up policy be surrendered?

Surrender – you can surrender the policy if at least 3 years' premium has been paid, i.e. the policy has acquired a paid-up value. On surrendering, the Surrender Value is paid immediately to the policyholder and the plan terminates.

What does paid up mean?

adjective. paid in full, as of the present or of a specified date: a paid-up membership.

What happens to the cash value when you die?

When the policyholder dies, their beneficiaries receive the death benefit, in lieu of any remaining cash value. ... Permanent life insurance offers both a death benefit and a cash-value amount but on death, beneficiaries only receive the death benefit. Any remaining cash value goes back to the insurance company.

What is a paid up annuity?

Longevity Annuity: also known as a “paid-upannuity. This type of annuity provides protection against outliving your money late in life. They are usually purchased as a supplemental retirement investment. Once the payout begins, the annuity provides a regular amount of income for the rest of your life.

What is paid to date in insurance?

The paid-to-date is the last coverage date for the member based on their premium payments. ... Checking eligibility and/or benefit information is not a guarantee of payment.

What is a premium?

Definition: Premium is an amount paid periodically to the insurer by the insured for covering his risk. ... For taking this risk, the insurer charges an amount called the premium. The premium is a function of a number of variables like age, type of employment, medical conditions, etc.

What is insurance and how does it work?

Insurance is a contract that transfers the risk of financial loss from an individual or business to an insurance company. They collect small amounts of money from clients and pool that money together to pay for losses. Insurance is divided into two major categories: Property and Casualty insurance (P&C)

Which type of life insurance policy generates immediate cash value?

Whole life insurance