क्या आप जानते हैं??

How can you revive your inactive PPF, insurance policies, Sukanya Samriddhi yojna account and mutual fund SIP’s?

PPF account becomes inactive if a minimum of Rs 500/- is not deposited in a financial year. The amount accumulated however continues to earn interest.

Sukanya Samriddhi Yojana

SSY account gets discontinued if a minimum of Rs 250/- is not deposited in the account in a year.

For revival:
• Go to the concerned post office or bank branch with a request for revival.
• A minimum amount of Rs 1000/year of non-payment needs to be paid.
• Also a penalty of Rs 50/- would be charged for each year of inactivity.

Life Insurance Policies:
Life insurance policies lapse if premium payment is not made within the grace period.
There would be no cover during the period of non-payment.

A) Revival of Endowment Policies:
• Policy can be revived within 2 years from date of discontinuance.
• Approach the insurer’s branch office or an agent.
• Pay all premiums due, an interest, late payment charges and other penal charges.
• If policy is revived within 6 months from due date of the first missed payment, you need not give a good health declaration. If policy revived after 6 months, medical requirements would have to be fulfilled.

B) Revival of term insurance:
• Can be revived within 2 consecutive years of lapse.
• Can be revived by paying all the unpaid premiums and a late fee.
• It is better to opt for a new insurance cover unless there is some health issue which only the current insurer is ready to cover.

C) Revival of ULIP’s:
If policy is discontinued within the lock-in period:
• Policy can either be revived within 2 years from discontinuance or withdraw the policy without any risk cover.
• Post discontinuation, fund value will be moved to a discontinued policy fund that will earn minimum of 4% per annum and attract a fund management charge of 0.5%.
• You will receive proceeds at the end of the lock-in period.

Health insurance policies:
• Policy will lapse if payment is not made within the grace period of 30 days.
• No coverage during lapsed period.

Revival process:
1. Insurer could insist on disclosure of any ailment acquired during period of non coverage or a health check-up.
2. A policy cannot be revived if policyholder missed more than one premium payment.

Motor insurance policy

The default: Missing annual premium payment.

The penalty: Policy will expire. No revival within 90 days of lapsation will lead to loss of accumulated no claim bonuses.

Revival process:
1. Once approached, insurer will schedule a visit by surveyor to inspect the vehicle for pre-existing damages.

Like our pages at

www.facebook.com/Invest India Online,

www.twitter.com/Invest India Online,

telegram channel

Written by 

Welcome to Invest India Online. Financial freedom means something different to every single one of our clients. For some, it means having enough money in retirement to build a second home and send the grandchildren to college.