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Missed your life insurance premium payment? Here's what happens next — grace periods, policy lapse rules, reinstatement options, and what to do immediately.
Life can get hectic — birthdays, bills, EMIs, and everything in between. So it’s no surprise that sometimes a life insurance premium slips through the cracks.
But if you’ve missed your due date, don’t assume your policy is gone forever.
Most life insurance plans in India have built-in buffers to protect you — including something called a grace period.
Let’s walk through what really happens, step by step.
The grace period is the bonus time your insurer gives after the premium due date — where you can still make the payment without losing your coverage.
Standard grace periods in India:
If you pay within this window, your policy stays fully active. No late fees, no loss of benefits, no risk.
It’s like a safety net — especially useful if you’re paying manually or forget to update your bank auto-debit.
This is where it gets serious.
If you still don’t pay even after the grace period ends, your policy will lapse — meaning:
In the case of term insurance, which is pure protection, the impact is even harsher — your entire premium is lost unless revived.
Yes — most insurers allow you to revive a lapsed policy, usually within 2 to 5 years of the lapse.
To do this, you’ll need to:
The longer you wait, the stricter the checks — especially for older applicants or large covers.
If you revive within the first few months, the process is usually simple. After a year or more, insurers might re-underwrite you.
These aren’t as straightforward as term insurance.
For ULIPs (Unit Linked Insurance Plans):
For Endowment Plans:
Always check your policy document for exact terms.
Here’s your action plan:
Pro Tip: Switch to monthly payments if annual feels too heavy. It’s easier on your budget and reduces the risk of forgetting.
It depends on your policy type:
That’s why consistent payment = long-term protection.
Missing a premium isn’t a disaster — as long as you act fast.
Because a life insurance policy only helps when it’s active. A lapse at the wrong time helps no one — especially not the people you’re trying to protect.