LIC Special Revival Scheme 2026: A Golden Chance to Restore Lapsed Policies With Late Fee Waiver Till March 2

Life Insurance Corporation of India (LIC), the country’s largest life insurer, has announced a major relief measure for policyholders whose insurance policies have lapsed due to missed premium payments. Starting January 1, 2026, LIC has rolled out a Special Revival Scheme that allows individuals to revive their lapsed policies at a significantly reduced cost. This limited-period initiative will remain open until March 2, 2026, giving policyholders a valuable opportunity to restore their life cover and secure their financial future.

The special revival campaign is designed for individual policyholders who were unable to pay premiums on time due to financial or personal reasons. Through this scheme, LIC aims to help customers regain insurance protection while offering attractive concessions on late fees.

Key Highlights of LIC’s Special Revival Scheme

• The scheme is applicable from January 1 to March 2, 2026

• It is available only for individual lapsed policies

• Policies can be revived within five years from the date of first unpaid premium

• Late fee concessions of up to ₹5,000 are being offered

• Micro insurance policyholders will receive 100% waiver on late fees

This revival window is especially beneficial for those who want to continue their long-term insurance plans without bearing a heavy financial burden.

Which Policies Are Eligible for Revival?

According to LIC, the special revival scheme applies to individual life insurance policies that have lapsed due to non-payment of premiums. However, certain conditions must be met:

• The policy must still be within its premium paying term

• The policy should not have matured

• Revival must be completed within five years from the date the policy first lapsed

LIC clarified that this initiative is focused on restoring financial protection for policyholders and ensuring continuity of life cover.

Late Fee Discounts: Slab-Wise Benefits Explained

One of the biggest attractions of this scheme is the discount on late fees, which can go up to 30%, subject to a maximum cap. The concession varies depending on the total outstanding premium amount:

• Outstanding premium up to ₹1 lakh: Late fee discount up to ₹3,000

• Outstanding premium between ₹1,00,001 and ₹3 lakh: Discount up to ₹4,000

• Outstanding premium of ₹3,00,001 or more: Maximum discount of ₹5,000

This structured discount system ensures that policyholders across different premium brackets benefit fairly from the revival initiative.

Big Relief for Micro Insurance Policyholders

LIC has announced a major benefit for customers holding micro insurance policies. Under this special revival scheme, micro insurance policyholders will receive a 100% waiver on late fees. This means they will only need to pay the pending premium amount, with no additional revival charges.

This move is expected to benefit economically weaker sections and rural policyholders who rely heavily on micro insurance for financial security.

Why This Revival Scheme Matters

A lapsed life insurance policy not only leads to loss of coverage but also puts years of disciplined savings at risk. Restarting a policy under normal circumstances can be expensive due to penalties and interest. LIC’s limited-time revival scheme significantly reduces this burden, making it easier for policyholders to regain protection without starting a new policy from scratch.

Moreover, reviving an old policy helps retain original benefits such as:

• Lower premium rates

• Accumulated bonuses (if applicable)

• Continued long-term financial planning

How to Avail the LIC Special Revival Scheme

Policyholders can visit their nearest LIC branch or contact their assigned LIC agent to initiate the revival process. Required documents may include policy details, identity proof, and a declaration of good health, depending on the policy terms.

Since the scheme is available for a short duration, LIC has advised policyholders not to delay the process.

Final Takeaway

LIC’s Special Revival Scheme 2026 is a rare and time-bound opportunity for policyholders to bring their lapsed insurance policies back to life with minimal additional cost. With late fee concessions, flexible eligibility, and complete fee waivers for micro insurance plans, this initiative offers much-needed financial relief.

Policyholders whose LIC policies have lapsed should act quickly and complete the revival process before March 2, 2026, to ensure continued life cover and long-term financial security.