FAQs

Life Insurance

23 Jan 2003

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NO. Once a policy becomes a paid-up one, the sum assured is reduced to such a pitiful figure that it cannot provide any cover to the policyholder or his dependants. Besides, you should also consider the facts that:

  • The cost of insurance goes up with advancing age. The next time you obtain a policy, the terms will not be as advantageous as available earlier.
  • The chances of insurability also diminish with the advancement of age despite the fact that insurance is needed more along with increasing age and growing responsibilities.
  • The reinstatement of a policy once converted into a paid-up policy requires numerous cumbersome formalities to be completed.
  • A paid-up policy cannot participate in the bonus declared by LIC.
  • LIC will not issue a fresh policy for at least 3 years in case an earlier policy of yours stands lapsed or was converted into a paid-up one.

It is strongly advised that you should NOT allow any of your policies to become paid-up policies.

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