Definition: Insurance policy
lapses when the insured defaults on the payments of renewal premium beyond a
grace period. Insurance companies provide an option of reactivating the lapsed
policy, within a specific period of time post the grace period. This period
offered by the insurer to revive the policy and avail benefits pertaining to it
is termed as revival period.
Description: 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.
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