LAPSE OF POLICY

PRESENTED BY:
Bhuvaneswari
LAPSE OF POLICY

 A lapse occurs when premium

payments on a life insurance
policy are missed and,
depending on the type of
insurance, the cash value is
exhausted. “Lapse” is shorthand
for a “lapse in coverage,” which
means the policy will no longer
pay a death benefit for the
insured person.
REASON BEHIND THE LAPSE :

 Excessive delay in payments and servicing of the policy leads

to the policy being dead or lapsed. However, a lapsed policy
may be revived by fulfilling the terms and conditions as per
the policy statement.
 To avoid losses to all parties, Generally the revival and
reinstatement is encouraged and facilitated.
REVIVAL PERIOD

 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.
 In another case, the policy holder needs to undergo medical
tests in order to reinstate the policy.
TYPES OF REVIVAL

 Ordinary Revival Scheme.

 Special Revival Scheme.
 Loan-cum-Revival Scheme.
 Survival Benefit cum Revival Scheme.
 Revival By Installment Method.
THANK YOU