REVIVAL PERIOD

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REVIVAL PERIOD The revival period is the span of time offered by the insurance company during which the policyholder can reactivate a lapsed policy. Once the revival period is over the policy can never be re-activated even if the policyholder wants to pay all the premium payments that are due. However, the re-activation process must be completed within a specific period of time after the grace period ends. This period is known as a revival period. During the revival period, the policy is reinstated on the basis of certain conditions. In one case, the policy holder needs to pay the interest along with the unpaid premium. In another case, the policy holder needs to undergo medical tests in order to reinstate the policy. Usually life insurance policies have a revival period of 2 consecutive years since the policy has been lapsed. Under the revival period the policyholder can revive the life insurance policy by making the due premium payment along with applicable charges. For example; Laura bought a term life insurance policy for a policy term of 15 years. She paid the premium for 10 years but had to discontinue the payment as he lost her job due to COVID-19. It took her one year to find another suitable job. After that, Laura approached the insurance company requesting the policy revival. As she applied within the revival period of 2 years, and her cause for discontinuing the policy was genuine; the insurance company accepted her request for policy revival. She did all the due payments and her policy came into life again. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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