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A 33-year-old man had bought a term plan for 20 years for a sum assured of ₹ 10 lakh in 2002.Assume further that he paid 12 yearly premiums of ₹ 3637 (till and including 2013) and then the policy lapsed. As of 2016, there would be two unpaid premiums one each for 2014 and 2015. How will he revive his policy? |
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Answer» Many people are faced with the dilemma of whether to revive a lapsed policy or buy a new one. It often happens that a person either forgets or does not have the money to pay the premium for insurance plan. Normally every policy has a grace period varying from 15 to 30 days within which premium can be paid after the due date. How ever, if the premium is not paid even within the grace period the policy lapses. In the given case the person would have to pay one time payment comprising unpaid premiums for 2 years and late fee. The decision about whether to revive a lapsed term policy or buy a new one will vary from case to case. However, it is advisable not to base your decision merely on premium amount but choose the life insurer of whom you are confident and the policy that suits your needs. |
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