RENEW A LAPSED POLICY

I forgot to pay the premium of my life insurance policy and the policy lapsed. How can I revive my policy?
A policy lapses if the premiums are not paid within the due date or the grace period permitted by the insurance company. However, a policy that has lapsed can be revived within five years from the date of first unpaid premium. In your case, your policy can be revived under the ordinary revival scheme. For this all the arrears of unpaid premiums with interest will have to be paid. Along with this the insurers may ask you to submit a ‘Declaration of Good Health’ (form no. 680).

PARTIAL WITHDRAWAL IN ULIP

I took a unit-linked insurance plan (Ulip). I have paid the premium for six years. I want to withdraw some of this amount. Should I make partial withdrawal or surrender the policy?
The decision to choose between partial withdrawal and surrender should depend on the severity of your need and the returns from the policy. Partial withdrawal is allowed only after the completion of the lock-in period (which varies from three to five years as per the terms of the policy). As you have paid premium for six years, you can make partial withdrawals.
The sum assured as per your policy will be proportionately reduced by the amount of partial withdrawal made. Partial withdrawal is a good option if the Ulip fund is performing very well and you do not want to quit the policy. This way you can get the required amount as well as continue with the policy.
A policy can be surrendered any time after the lock-in period. The insurer will pay as per the prevalent market rate of the net asset value (NAV) of the units on the day of surrender. The decision to quit the policy should be taken only after considering the current and future returns from a policy.