Life insurance policy: Should you revive old plan or buy new one?

Term plan premium rates have fallen, but poor health can be an obstacle

Many policyholders allow their life insurance policies to lapse. According to the data from the Insurance Regulatory and Development Authority of India, only 35 per cent of policies remained active after five years.

Insurers occasionally launch special drives to revive lapsed policies. Currently, Life Insurance Corporation of India has launched one wherein it is allowing customers to revive policies that have remained lapsed for more than two years.

The grace period ranges between 15 and 30 days in policies after which they lapse. According to the revised rules, non-linked life policies can be revived within five years (up from two years earlier)