Life Insurance Corporation of India, commonly known as LIC, is a government-owned insurance company that has been operating in India for over 60 years. It is one of the largest insurance companies in the country and provides a range of life insurance products to its customers.
If you are a policyholder of LIC, it is important to keep track of your policy status. Knowing the details of LIC policy status can help you stay informed about the various details related to your policy, such as premium payments, maturity dates, and other relevant information. In this blog post, we will take a closer look at LIC policy status, what it means, and how to check LIC policy status.
What is LIC Policy Status?
LIC policy status refers to the current state of your policy. It provides information about the various details of the LIC policy, such as the premium payment due date, the amount of premium paid, the policy’s maturity date, and other relevant information. By knowing the details of LIC policy status, policyholders can stay informed about the progress of their policy and make necessary changes or updates, if required.
Why is it Important to Check Your LIC Policy Status?
Checking your LIC policy status is important for several reasons. Here are some of the key reasons why you should check your policy status regularly:
- Stay Informed: By checking your policy status, you can stay informed about the current state of your policy, including premium payments, maturity dates, and other details.
- Avoid Policy Lapses: Regularly checking your policy status can help you avoid policy lapses, which can occur when you miss a premium payment. A policy lapse can result in the termination of your policy, which means you may lose all the benefits of the policy.
- Make Necessary Changes: By knowing your policy status, you can make necessary changes to your policy, such as updating your contact information or changing the premium payment frequency.
- Plan for the Future: You can plan for the future and make necessary arrangements for the policy’s maturity amount.
How to Check LIC Policy Status?
There are several ways to check your LIC policy status. Some of them are:
Online – The easiest and most convenient way to check your LIC policy status online is through the LIC website. This method lets you get the LIC policy details by LIC policy number. Here’s how you can do it:
- Visit the LIC official website (licindia.in).
- Click on the “Customer Services” tab.
- Click on the “Policy Status” option.
- Enter your LIC policy number and other details, such as your date of birth and mobile number.
- Click on the “Submit” button.
- Your LIC policy status will be displayed on the screen.
SMS – You can also check your LIC policy status by SMS. Here’s how you can do it:
- Send an SMS to 56767877 in the following format: ASKLIC <Policy Number>.
- You will receive an SMS with your policy status.
Customer Care – This is how you can also check your LIC policy status by calling the LIC customer care number.
- Call the LIC customer care number (022 6827 6827).
- Follow the IVR instructions and select the option to check your policy status.
- Enter your policy number and other relevant details.
- Your policy status will be provided over the phone.
LIC Branch Office – You can also visit your nearest LIC branch office and check your policy status in person.
- Visit your nearest LIC branch office.
- Submit your policy number and other relevant details to the LIC representative.
- The representative will provide you with your LIC Policy status.
What are the different LIC Policy Statuses?
There are different LIC policy statuses, and they signify different things. Some of the common LIC policy statuses are as follows:
- In-force
If the policy is in force, it means that the policyholder has paid the premium and the policy is active. The policyholder can avail of the benefits as per the policy terms and conditions.
- Lapsed
If the policyholder fails to pay the premium within the grace period, the policy lapses. The policyholder will not receive any benefits, and the policy will be terminated.
- Surrendered
If the policyholder decides to surrender the policy, it means that the policy is terminated, and the policyholder will receive the surrender value as per the policy terms and conditions.
- Paid-up
If the policyholder fails to pay the premium after paying a minimum number of premiums, the policy becomes paid up. The policyholder will not receive the full benefits, but a reduced sum assured will be paid as per the policy terms and conditions.
- Discontinued
If the policyholder fails to pay the premium within the grace period and the policy has not acquired any paid-up value, the policy becomes discontinued. The policyholder will not receive any benefits, and the policy will be terminated.
What are the consequences of a lapsed LIC policy?
A lapsed LIC policy can have severe consequences, such as the loss of insurance coverage, forfeiture of premium payments, and loss of maturity benefits. Policyholders must ensure that they pay their premiums on time and keep their policies active to avail of the benefits associated with them. In case of a policy lapse, policyholders should try to reinstate it within the revival period specified by LIC to avoid any financial loss. It is essential to understand the terms and conditions of the policy and the consequences of a lapsed policy to make informed decisions about one’s insurance portfolio. The consequences of a lapsed policy are as follows:
- Loss of Insurance Coverage
The primary consequence of a lapsed LIC policy is the loss of insurance coverage. The policy becomes inactive, and the policyholder is no longer entitled to any of the benefits associated with it. This means that the policyholder’s family or nominees will not receive any death benefit in case of the policyholder’s untimely demise. The policyholder’s dependents will have to bear the financial burden of the loss, which can have severe implications on their financial stability.
- Forfeiture of Premium Payments
When a policy lapses, the policyholder loses the premiums paid towards the policy. This means that the policyholder forfeits the premium payments made towards the policy and will not receive any of the benefits associated with it. The amount paid towards the policy till the time of lapse is not refundable, and the policyholder may end up losing a substantial amount of money. The policyholder may also have to pay penalties or interest charges in case of non-payment of premiums on time.
- Loss of Maturity Benefits
When a policyholder fails to pay premiums on time, the policy can also lapse before it matures. In such cases, the policyholder loses the maturity benefits associated with the policy, such as the lump sum payment at the end of the policy term. The policyholder may have to bear the financial loss of the forfeited benefits, which can be substantial depending on the type of policy and the policy term.
- Reinstatement of Lapsed Policy
It is possible to reinstate a lapsed LIC policy by paying the unpaid premiums along with the interest and penalties if any. The policyholder must apply for the policy’s reinstatement within the revival period specified by LIC, which is usually two years from the date of the policy lapse. The revival process may also involve submitting a declaration of good health and paying a revival fee. The reinstatement of a lapsed policy may also result in changes in the policy terms, such as a reduction in the sum assured or an increase in the premium amount.
Conclusion
Checking the LIC policy status is crucial for ensuring that the policy is active, and the premiums are paid on time. It helps in avoiding policy lapses. Regularly checking the policy status helps policyholders keep track of their policy details, payment status, and other relevant information. This, in turn, helps policyholders plan their finances and ensure that they do not default on premium payments.
Policyholders should make it a habit to check their LIC policy status regularly to ensure that their policy is active and that they are aware of any lapses or other issues. The policy status provides vital information that can help policyholders make informed decisions about their policy, such as surrendering or reviving the policy, or availing of additional benefits and riders. It is essential to keep in mind that the policy status can vary depending on the type of policy and the policyholder’s payment history, among other factors. Thus, it is crucial to check LIC policy status regularly to stay updated on any changes or updates.