Renewal of Life Insurance Policy:
Life insurance policy is a long term contract between the life insurance company and the policyholder. The payment of premium towards a regular premium policy is spread over the premium paying term of the policy. A policyholder has to pay the premium on or before the due date.
However, the insurance company provides for certain grace period for payment of premium. BAJAJ ALLIANZ allows 30 days grace period for modes of Quarterly, Half Yearly & Yearly and 15 days grace for Monthly modes. If the premium is still not paid within grace period, the policy lapses. If the premium is not paid within grace period, the policy lapses with effect from the First Unpaid Premium (FUP).
A lapsed policy may be revived during the lifetime of the Life Assured within end of revival period from the date of FUP and before the due date of last premium on submission of evidence of health satisfactory to the company and on payment of all arrears of premium with interest. The revival can be initiated on the written request received from the customer. The company however reserves the right to accept or reject the revival or revive the policy on modified terms.
BAJAJ ALLIANZ follows a process of revival which depends upon the period elapsed since the date of First Unpaid Premium (FUP) and also based on the health conditions of the Life Assured at the time of revival.
1) Within six months from the due date of first unpaid premium (FUP):
If the revival is sought within six months from the date of First Unpaid Premium (FUP), no evidence of good health is called for. The policy is revived automatically subject to receipt of arrears of premium along with interest.
2) After six months from the due date of first unpaid premium (FUP):
A lapsed policy may be revived during the life time of the life assured within the revival period from the date of FUP on submission of evidence of health satisfactory to the company and on the payment of arrears of premium along with interest. The company however reserves the right to accept the revival on original terms or on modified terms or even reject the request for revival of a lapsed policy based on internal underwriting guidelines.