Top News

There is no shortage of investment opportunities in our country. Nowadays many people are turning to mutual funds in the hope of higher returns. However many prefer safe and secure investments instead of high returns.
The name LIC comes up first in this context. Its name has been heard in every Indian's house for many years. It is unlikely to find an Indian family that does not have a single LIC policy.
LIC indeed has different policies for all categories of Indians. Sometimes you have to pay a lot of money in one go, somewhere or the monthly installment rate is negligible. This instalment is called a premium in policy parlance. The thing is, India is still a third-world country, and the financial structure of many families in this country is not that strong. As a result, an investor may not be able to collect his LIC policy premium in any given month.

LIC indeed has different policies for all categories of Indians. Sometimes you have to pay a lot of money in one go, somewhere or the monthly installment rate is negligible. This instalment is called a premium in policy parlance. The thing is, India is still a third-world country, and the financial structure of many families in this country is not that strong. As a result, an investor may not be able to collect his LIC policy premium in any given month.
Will the LIC policy lapse if the premium is not deposited on time? That is, will be closed? Let's see what LIC itself says in this regard.
LIC clarifies in this regard that if one is unable to deposit his policy premium within the stipulated time, then there is nothing to worry about. In this case, LIC will give a certain time to the investor to deposit the premium. This is called the grace period.
Now if someone can not deposit the premium within the grace period? There is nothing wrong with that, the policy will not be closed. However, if the premium is not paid within this additional period, a penalty will have to be paid.
And if the grace period ends? LIC says that only then will the policy cease.
However, there is no need to worry about the policy being discontinued. The policy can be reintroduced at any time after payment of interest. However, these interest rates and grace periods are not fixed and will vary from person to person.