A policy will lapse if the premiums are not paid within the due date or the grace period given by the insurance company. However, a lapsed policy can be renewed within 5 years from the date of first unpaid premium. There are five different kinds of schemes under which a policy can be revived.

Ordinary Revival Scheme

In this scheme, all the arrears of unpaid premiums with interest have to be paid. Along with this, 'Declaration of Good Health' in Form No. 680 and medical certificate, if necessary, are required.

Special Revival Scheme

If a person is not in a position to pay all the arrears, then he can choose this scheme. Under this scheme, the date of commencement will be shifted so that the policy is not lapsed just prior to the date of revival, i.e. the date of commencement is advanced approximately by the period of lapse. Other requirements like 'Declaration of Good Health' and Medical certificates wherever necessary are required as in Ordinary Revival.

Special Revival is allowed under these following conditions:-

•    The policy should not have acquired any surrender value
•    Revival should be within 3 years of lapse.
•    Special Revival is allowed only once during policy term

Revival by Installment method

If an insurer is unable to pay arrears in lump sum and if the policy can not be revived under Special Revival Scheme, he can use Installment Revival Scheme. In this scheme, on the date of revival he has to pay immediately:
•    6 months premiums, if mode is Monthly
•    2 quarterly premiums, if mode is Quarterly
•    1 Half year premium, if mode is Half yearly

Half of the yearly premium, if mode is yearly. The balance of revival amount is paid in installments spread over two years along with normal premium installments. Other requirements regarding health are, as required in Ordinary Revival Scheme.

Loan-cum-Revival Scheme

If a policy acquires surrender value on the date of revival, the policy can be revived taking a policy loan and the loan amount will be calculated treating the premiums as paid up to the date of revival. Short fall, if any, in revival amount is called for. If the loan amount is more than required for revival, the excess will be paid to the policyholder.

Survival Benefit cum Revival Scheme

The Survival Benefit, which falls due in a money-back type of policy can be used for revival of the policy, if date of revival is later than the Survival Benefit due date. If the Survival Benefit amount is less than the revival amount, the short fall will be called for. If the Survival Benefit is more than the revival amount, the excess is paid back to the policyholder. The other requirements for normal Survival Benefit settlement and revival requirement are to be fulfilled.