Your State Life policy lapsed: how to revive it, and how long you have

In short

• You have a 31-day grace period after every due date, on yearly, half-yearly, quarterly and monthly plans alike.
• A lapsed policy can be revived within five years from the date of the first unpaid premium.
• Revival needs a medical or non-medical revival form, depending on your age and the sum assured.
• If nothing is done, a policy with enough value is kept alive automatically for a while; one without can be forfeited entirely.

First: the grace period

Every premium has **31 days** after its due date in which it can still be paid, and this is the same whether you pay yearly, half-yearly, quarterly or monthly. The policy is in force throughout. A payment that is a fortnight late is not a lapse and does not need reviving — it needs paying.

State Life describes a lapse as what happens when the second premium is not paid within that grace period. The practical reading is simple: once a due premium has gone unpaid beyond its 31 days, you are into lapse territory and the clock in the next section starts.

The five-year window

A lapsed State Life policy can be revived **within five years from the date of the first unpaid premium**. That is a generous window by the standards of most financial products, and it is measured from the first premium you missed — not from the day you noticed, and not from the last one.

The reason to act early inside that window is cost, not eligibility. Reviving means settling what is owed, and the longer you leave it the more there is to settle.

What revival requires

You complete a revival form at the zonal office that services your policy. There are two kinds — a **non-medical** form and a **medical** one — and which you need depends on your age and the sum assured at the time of revival.

That is the quiet reason not to wait. Health is assessed at revival, not at the date the policy was first issued. A condition that develops during the years a policy sits lapsed can make revival harder or more expensive, and the policy you are trying to bring back was priced when you were younger and healthier.

What happens if you do nothing

A lapsed policy is not immediately worthless. State Life has two automatic non-forfeiture options that decide what becomes of it.

• Automatic Premium Loan. While the policy's net surrender value covers the unpaid premium, State Life lends the policy that premium and keeps the cover in force. When the value no longer covers it, the policy continues for a proportional broken period and is then forfeited, losing its benefits.
• Automatic Paid-up. The policy converts to a reduced, paid-up sum insured, specially calculated to clear anything outstanding against it. No further premiums are due, and the cover continues at the lower amount — but a paid-up policy earns no further bonuses. If the calculated paid-up sum insured works out at less than Rs. 100, the policy is not converted; it is treated as forfeited and loses all its benefits.

Paid-up, revival, or let it go

These are the three real options and they suit different situations. Revival restores the original policy, with its original sum assured and its bonus entitlement, and is almost always the best outcome if you can afford to catch up. Paid-up keeps a smaller amount of cover at no further cost, and makes sense when the premium is genuinely no longer affordable. Letting a policy forfeit is the only one with nothing to show for it.

A policy that has been made paid-up may be revived for the full sum insured under State Life's policy conditions, so paid-up is not necessarily the end of the road either.

Bring us your policy number and we will tell you which window you are in and what each route would cost. There is no charge for that conversation.

A different 14 days: cancelling a new policy

Worth not confusing with any of the above. If you have just taken a policy out and changed your mind, State Life allows you to apply to cancel it within **14 days of issuance**, at the New Business Department of the relevant zone, with a written request, your valid CNIC and the original documents.

This is a cancellation right, not a full refund: what you paid is returned after deduction of administrative expenses, and medical expenses if a medical examination was carried out.

Key terms

Grace period

The 31 days after a due date in which a premium can still be paid and the policy stays in force.

Lapse

What a policy does when a due premium goes unpaid beyond its grace period.

Revival

Bringing a lapsed policy back, within five years of the first unpaid premium.

Non-forfeiture option

What State Life does automatically with a lapsed policy that still has value.

Forfeited

A policy that has lost all its benefits and cannot be brought back.

Questions people ask

How long is the State Life grace period?

31 days after each due date, on yearly, half-yearly, quarterly and monthly payment modes alike.

How long do I have to revive a lapsed State Life policy?

Five years from the date of the first unpaid premium.

Will I need a medical to revive my policy?

Revival uses either a non-medical or a medical form, depending on your age and the sum assured at the time of revival. Health is assessed then, not at the original issue date, which is why reviving sooner is easier.

What is a paid-up policy?

One where premiums have stopped and the cover continues at a reduced sum insured. It earns no further bonuses, and if the calculated paid-up amount is under Rs. 100 the policy is forfeited instead.

Can a forfeited policy be brought back?

No. A forfeited policy has lost its benefits. A paid-up policy, by contrast, may be revived for the full sum insured under State Life's conditions.

I only took the policy out last week and want to cancel. Can I?

You can apply to cancel within 14 days of issuance at the zone's New Business Department. The premium is refunded after deduction of administrative expenses, and medical expenses if a medical was done.

Sources

• State Life, Frequently Asked Questions (lapse, revival, non-forfeiture options, cancellation)