A lapsed policy can be revived by paying the missed premiums and the discounted late payment fee.
If the policy has lapsed for more than six months, policyholders also have the option of paying one or two months’ premiums and extending their policy term further, after submitting a health declaration, the Company said.
As part of the initiative, the life insurance leader has commenced a communications campaign to educate policyholders about the disadvantages and potential pitfalls of having inactive policies.
Ceylinco Life’s sales team has also been tasked with door-to-door calls on lapsed policyholders to facilitate re-activation.
Members of Company’s sales team will approach lapsed policyholders island-wide with tools such as informative videos and real life examples, to convince them to revive their policies.
“There is inadequate awareness in the market of the consequences of having a lapsed life policy,” Ceylinco Life Managing Director Mr Thushara Ranasinghe said.
“In many instances, the policyholders’ beneficiaries are unaware that their policies have lapsed and have a false sense of security.
This campaign will help improve awareness about the negatives of this situation, and serve as a catalyst to reviving many lapsed policies.”
The disadvantages of an inactive life insurance policy include the cancellation of maturity benefits at the end of the policy term, non- payment of death claims to beneficiaries should anything untoward happen to the lapsed policyholder, and revocation of medical benefits, if any, to policyholders and family members.
After the reactivation of their policies, policyholders will be able to claim benefits pertaining to their policies subject to the waiting period from the date of revival, the Company said.
Adjudged Sri Lanka’s most valuable life insurance brand by Brand Finance in 2019 and named the Best Life Insurer in 2018 for the fifth consecutive year by World Finance, Ceylinco Life has been declared the most popular life insurance company in the country for 13 consecutive years by SLIM-Nielsen.
The market leader in Sri Lanka’s life insurance industry for 15 of the 31 years it has been in operation, the Company has close to a million lives covered by active policies and is acknowledged as a benchmark in the local insurance industry for innovation, product research and development, customer service, professional development and corporate social responsibility.