How to prevent my LIC policy from lapsing?
After all, all your plans for the protection of your near and dear ones as well as your investment for your old age could be nullified due to your policy lapsing due to non-payment of premiums. Yet, thousands of policies issued by LIC do lapse after a few years as a result of negligence and carelessness of the policyholders in making regular premium payments.
A grace period of 30 days is allowed for payment of yearly, half-yearly and quarterly premiums and fifteen days, in case of monthly payment of premium.
Please do NOT wait until the last few days of the grace period. The safest way to pay your premiums is on a yearly basis. Even if your policy has commenced on a quarterly premium basis, it is advisable to change it to yearly payment later on. The lesser your transactions with the insuring company, the better. Besides it is easier to remember the due date in a year. The more frequent the payments, the higher are your chances of the policy lapsing.