LIC: Lapsed policies can now be revived at a lower cost, and a new plan with a single premium payment option has also been launched..

Life Insurance Corporation of India (LIC) has given its millions of customers a double treat at the beginning of 2026. The country's largest insurance company has not only announced the launch of a brand new ‘Jeevan Utsav Single Premium’ plan but has also introduced a scheme to revive lapsed policies.

LIC is continuously strengthening its product portfolio. In this regard, the company has introduced a new insurance plan called ‘LIC Jeevan Utsav Single Premium’. This plan will be available for sale to the general public from January 12, 2026. According to information provided to the stock exchange, this is a non-linked, non-participating, individual savings and whole life insurance plan.

This plan is designed for those who want to avoid the hassle of paying premiums repeatedly and want to benefit from lifelong security and savings with a one-time investment. It is worth noting that last year too, LIC launched several products in the market, such as ‘Bima Kavach’, ‘Jan Suraksha’, and ‘Smart Pension Plan’, but ‘Jeevan Utsav’ is a major addition in the single premium category.

Chance to revive lapsed policies
Often, due to financial difficulties or oversight, people fail to pay premiums on time, and their policies lapse. In such cases, policyholders are deprived of insurance coverage. Understanding this problem, LIC has launched a special ‘Revival Campaign’. This campaign started on January 1, 2026, and will run until March 2, 2026.

During this period, if any of your individual policies have lapsed due to non-payment of premiums, you can revive them with significant discounts. LIC says that this campaign has been launched to help those policyholders who could not pay premiums due to adverse circumstances. Reviving an old policy is always considered better than buying a new one because you get the full benefit of the old bonuses and coverage. Huge Discounts on Late Fees
The biggest attraction of this campaign is the discount offered on late fees. LIC has offered this relief on non-linked and micro-insurance plans. If you revive your policy under this campaign, you can get a discount of up to 30% on late fees. This discount has been divided into three categories:

If your outstanding premium is up to Rs. 1 lakh, you will get a 30% discount on late fees (maximum Rs. 3,000).
For premiums between Rs. 1 lakh and Rs. 3 lakh, there is also a 30% discount, but the maximum limit here is Rs. 4,000.
For premiums of Rs. 3 lakh and above, the maximum discount will be up to Rs. 5,000.
Importantly, a 100% discount, or complete waiver, is being offered on late fees for micro-insurance plans. This is a great support for poor and middle-class families.

Your Policy Will Be Reinstated Under These Conditions
LIC has clarified that not every lapsed policy can be revived under this campaign. Only those policies can be revived whose premium payment period has lapsed and the policy term has not been completed. In addition, the policy can be revived only within 5 years from the date of the first unpaid premium. However, the company has also made it clear that no concessions will be given on medical or health-related requirements. This means that if a medical test is required for policy revival, you will have to undergo it.

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