Revival Period

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What is a revival period?

The revival period refers to the specific span of time provided by an insurance company during which a policyholder can reactivate their lapsed or dormant insurance policy. If a policyholder fails to pay the premiums within the grace period, the insurance policy typically becomes inactive or lapses. However, the insurance company offers a chance to reinstate the policy during the revival period.

How long is a revival period?

This period can vary from one insurance provider to another and also depend on the type of insurance. For reinstating the policy, the policyholder might need to pay the unpaid premiums, along with interest or a late fee, and may be required to submit a health declaration or undergo a medical examination, depending on the terms and conditions of the policy.

Purpose of the revival period

A revival period is used in insurance to give policyholders a chance to renew their expired coverage. This can happen for various reasons such as forgetting to pay, financial hardship, or misunderstanding the payment schedule. The key purposes of a revival period are:

Coverage Continuation If a policyholder fails to pay the premium within the stipulated time, the policy lapses, and the coverage stops. During the revival period, the policyholder can pay the due premiums, potentially along with a late fee or interest, to reinstate the policy and continue the coverage.
Benefit Protection A lapsed policy means loss of benefits, which can include the surrender value in a life insurance policy or coverage in a health insurance policy. The revival period allows policyholders to reactivate their policy, thus retaining their benefits.
flexibility It provides flexibility to those who might have missed their premium payments due to unforeseen circumstances or financial difficulties. The provision to revive the policy ensures that policyholders do not lose their coverage due to temporary financial problems.
preventive Measure The revival period serves as a wake-up call for policyholders to manage their premium payments better. It also indirectly encourages timely payments to avoid the penalties associated with policy revival.

It's important to note that conditions for revival may vary based on the policy type and insurance company.