Steps To Revive Lapsed Aegon Life Policy
Published On Jan 23, 2023 10:00 AM By InsuranceDekho
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A life insurance policy is a cushion of savings and protection. In addition to accomplishing all your financial goals, life insurance provides coverage for your loved ones after your demise. Despite knowing the importance of a life insurance policy, we often forget to renew our insurance plan on time due to daily chores. As a result, the policy gets lapsed and lose all the policy benefits. Aegon Life, one of the best life insurance companies in India, provides an opportunity to revive a lapsed insurance policy. The process depends on the policy type and coverage duration. In this article, we’ll guide you through the steps to revive your lapsed Aegon Life Insurance. However, before that, let’s understand the meaning of "lapsed insurance policy."
What Is Lapsed Insurance Policy?
A lapsed insurance policy is a condition in which the policyholders fail to pay the premium amount before the due date and within the grace period. In this case, the insured will no longer be eligible to claim their life insurance policy and receive any death benefit.
You can renew your lapsed Aegon Life Insurance within a time span of 5 years from the date of the unpaid premium.
How To Revive a Lapsed Aegon Life Insurance Policy?
Aegon Life Insurance policy revival depends on the number of days you’ve delayed payment of the premium. Generally, the company provides 5 years of coverage to revive an existing life insurance policy. Here are the steps that you can follow to revive a lapsed Aegon Life policy.
- Talk about policy revival with your insurance company.
- Submit insurance proof and all the policy documents asked by the insurance company. The insurer may also ask you to undergo a medical examination.
- After document verification, pay all the arrear premiums, including revival fees.
- Once all the above steps are completed, Aegon Life Insurance will revive your lapsed insurance policy and you can continue to enjoy all the coverage benefits for which you were eligible earlier.
Why Should You Renew Aegon Life Policy Instead of Buying New Ones?
As you get older, the premium for term insurance policies also increases. For instance, if you buy a term life insurance plan at age 24 with a two-year annual premium payable amount of Rs. 6,000, due to the non-renewal, the policy lapses. As a result, you would have to pay Rs. 12,000 as a premium. If, after three years of the policy lapse, you want to renew your life insurance policy, the insurance provider will charge a renewal fee, a late fee, and interest charges for the accrued premium for three years.
In addition, if you plan to buy a new life insurance policy at the age of 7, you might have to pay a premium of up to Rs. 8,000 annually. Therefore, in this case, you’re paying Rs. 2,000 more on premiums every year. In the event that you revive your existing lapsed policy, the premium will not change.
Aegon Life Insurance is one of the leading life insurance companies, providing numerous products to cater to the unique requirements of individuals. You can also visit the branch office of Aegon Life in person or call the toll-free number of the company to revive your lapsed Aegon Life policy.
Also read: Steps To Revive Lapsed HDFC Life Policy