LIC Policy Revival After 5 Years: Complete Guide & Surrender Rules (2026)

Life Insurance Corporation (LIC) policies lapse when premiums are not paid within the grace period (30 days for yearly/half-yearly, 15 days for monthly). Standard revival is permitted within 5 years from the date of the First Unpaid Premium (FUP). But what happens if 5 years have passed?

Can You Revive an LIC Policy After 5 Years?

Strictly speaking under standard LIC rules, no. Once 5 years from the FUP elapse without revival, the policy cannot be revived through ordinary or special revival schemes. However, policyholders still have critical options:

• Surrender Value: If your policy has completed at least 3 full years of premium payments, it has acquired a Guaranteed Surrender Value (GSV). You can surrender it to claim your accumulated funds.
• Paid-Up Value: If not surrendered, the policy may continue as a reduced paid-up policy, paying out reduced benefits upon maturity or death.

Revival Within 5 Years: What You Need

If your policy is within the 5-year window, revival requires paying all overdue premiums plus compounding interest (typically 9.5% to 10.5% p.a.), along with a health declaration or medical examination depending on your age and sum assured.