LIC Special Revival Scheme 2026: Big Relief for Lapsed Policyholders, Restore Your Policy by March 2

India’s largest life insurance provider, Life Insurance Corporation of India (LIC), has announced a major relief for millions of policyholders whose insurance policies have lapsed due to missed premium payments. LIC has launched a Special Revival Scheme for Individual Lapsed Policies, effective from January 1 to March 2, 2026.

This limited-period initiative allows policyholders to reactivate their discontinued life insurance policies at a reduced cost, with attractive concessions on late fees. The scheme aims to help customers regain their financial protection and continue long-term insurance coverage without heavy penalties.

Why LIC Introduced the Special Revival Scheme

Life insurance plays a crucial role in providing financial security to families. However, due to financial stress, job loss, medical emergencies, or lack of awareness, many policyholders are unable to pay premiums on time. As a result, their policies lapse, leading to loss of coverage and benefits.

Recognising this challenge, LIC has rolled out this revival campaign to give customers a second chance. The insurer stated that the objective of the scheme is to restore financial protection and encourage long-term insurance discipline among policyholders.

Key Highlights of LIC Revival Scheme 2026

The Special Revival Scheme comes with several benefits designed to reduce the financial burden on customers:

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

• Applicable only to individual lapsed life insurance policies

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

• Late fee discount of up to ₹5,000

• Discount slabs are linked to the amount of outstanding premium

This initiative is available for a limited time, making it an important opportunity for policyholders to act quickly.

Who Is Eligible for the Revival Scheme

According to LIC, the scheme applies to policyholders whose policies lapsed because premiums were not paid on time. To qualify for revival under this scheme:

• The policy must be an individual policy, not a group policy

• The policy should still be within the premium-paying term

• It must not have matured

• Revival must be done within five years of the first unpaid premium

If these conditions are met, policyholders can restore their coverage by paying pending premiums along with discounted late fees.

Discount on Late Fees: Slab-Wise Details

LIC is offering up to 30% discount on late fees, subject to a maximum cap. The discount varies based on the total outstanding premium amount:

• Outstanding premium up to ₹1 lakh: 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 approach ensures fair relief across different policy categories.

Major Relief for Micro Insurance Policyholders

One of the biggest highlights of this campaign is the 100% waiver on late fees for micro insurance policies. LIC has clarified that policyholders under micro insurance schemes will not have to pay any late fee while reviving their policies.

This step is expected to benefit low-income policyholders the most, ensuring continued insurance coverage for economically weaker sections.

How to Revive a Lapsed LIC Policy

Policyholders can revive their policies by visiting the nearest LIC branch, contacting their insurance agent, or using LIC’s official digital platforms. Basic documents and payment of pending premiums may be required, along with a possible health declaration depending on policy terms.

Why Policyholders Should Act Quickly

Since this is a time-bound offer, missing the deadline could mean losing the opportunity to revive the policy at a lower cost. Restoring a lapsed policy not only reinstates life cover but also protects long-term savings and future financial goals.