persentage icon with blue background6 Unbeatable Options Scalping Strategies by Sivakumar Jayachandran!  JOIN MASTERCLASS  persentage icon with blue background

100 FAQ's on Basic Finance

Module Units

What happens to your policy if you discontinue your premiums?

In case of a pure life insurance, if you discontinue your premiums, the policy lapses automatically and the risk cover stops.However, in traditional life insurance policy (investment-cum-protection policy), the original maturity amount is reduced by the insurance company.


You can follow these options in case of unpreventable situations:


  • Surrender – The surrender value of the policy is attained only after you pay full premiums for 2 or 3 years, depending on the term of policy.
  • Paid-up policy – If you discontinue your premiums, the policy automatically becomes paid-up. The maturity benefit, depending upon the number of premiums paid, will be paid at the end of policy term. 
  • Lapse – If you don’t pay for the minimum required years to attain surrender value, the policy will lapse and no benefits will be received.
  • Revival – You can revive your policy provided you do it within a certain prescribed period.

Did you like this unit?

Units 96/101