Policy Revival Measures

Ordinary Revival 

Involves payment of arrears of premium with interest. when the policy has acquired surrender value.

Special Revival 

If the policy has run for less than 3 years and has not acquired minimum surrender value, Special Revival is done. New policy has been written when the DOC is within two years of the original date of commencement of the lapsed policy.

Loan cum revival

The simultaneous granting of a loan and revival of the policy

Installment Revival

When the policy holder is not in a position to pay arrears of premium in a lumpsum and neither can the policy be revived under special revival scheme

Non Forfeiture Provision

If premium have been paid for at least  3 consecutive years, the accrued Surrender Value will be paid.

Surrender Value: It is a percentage of paid up value. Surrender value as a percentage of premuim paid is called Guaranteed surrender Value.

Policy Loan

1. When a policy acquires a cash value, policy holder can borrow money(loan) while keeping the insurance alive.
2. It is usually limited to a percentage of Surrender Value ( say 90%)
3. The policy has to be assigned in favor of insurer
4. Insurers charge interest on policy loans