In this era of frequent unhealthy situations and peoples’ pretentious concerns about leading a healthy life, insurances became a part of the monthly budget. Almost every joe signs up for some or other kinds of insurance policies. Most of the times, the medical insurance government offers won’t pay off the total sum of the hospital expenses. So, people often have an insurance policy with an esteemed organization.
Coming to the history, the birth of health insurance dates back to the time of the Great Depression in the 1930s. With the major upgrades every year, the health insurance in our country now stands as the major medium of assistance to the citizens. Now, people throughout the country pay certain amounts every month as a part of the insurance policy. They renew it every year systematically.
When Your Insurance Policy Relapses
But, there may be a time when you, the one who pays insurance, is away from the town, or unable to pay the monthly insurance amount as the numbers didn’t go well this month and as this followed for the rest few months, your insurance policy has lapsed.
All you want to do is ‘Revive’ the policy. Just as you failed to pay the money, your policy is dead. In general, the Insurance companies provide an option of reactivating the lapsed policy, within a specific period of time post the grace period. And while signing up for the policy you should be aware of the norms they attest your scheme with. If the research was not properly done, they might even loot you with the loopholes which were crafted for their own benefits.
There are a lot of people who care least about renewing their policies. Some deliberately leave ignores it, while others withdraw the cash through surrender value. The latter is the money your insurance company will pay you if you terminate the policy completely before it matures. It is important to note that you have paid money through premiums and it is best to revive the life insurance policy, provided you are happy with the present terms and conditions of the insurance firm.
Change In Mind?
But, what if you change your mind? What if your thoughts towards the insurance policy and security change otherwise? In that case, you wish you could revive the policy. Here we did some basic research about reviving the lapsed life insurance policy, and we wish to let you know the same.
The possibility of the revival depends on the time and frame exclusively.
A Normal Revival
This is the most common type. Here if you have not paid the premium for the previous six months or so, you can pay and revive the policy. Though there would be a rate of interest that would be applicable, it won’t be too high. Also, you do not have to bother much on a health check-up process once again.
What If You Want To Get Revived After Some Time?
Well, if you want to revive the policy after some considerably long time, you have to undergo the medical tests once again. The policies of the Life Insurance company may ask you for that in most of the conditions. They do this because there are possibilities for necessary changes in your health condition.
The fresh agreement also includes certain conditions like ‘the suicide pact’ of one year. This indicates that amounts would not be paid if there is suicide within one year from taking a new policy. The company will also conduct a series of investigations if you die within two years from the date of the newly signed policy.
Moreover, when you approach the insurance company for the revival, be transparent with them. Convey to them if you are suffering from some illness. Do not forget telling them the reason behind lapsing the earlier life insurance policy. By doing this, the process of claiming the insurance benefits gets easier for the nominee who comes after your death.
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