Are you curious to know what is fup in lic? You have come to the right place as I am going to tell you everything about fup in lic in a very simple explanation. Without further discussion let’s begin to know what is fup in lic?
In the world of insurance, FUP stands for “First Unpaid Premium”. It refers to the initial premium that is not paid by the policyholder on the due date. In the case of LIC (Life Insurance Corporation of India), FUP is an important concept that every policyholder must understand. In this blog, we will explore the significance of FUP in LIC and how it can impact your insurance policy.
What Is FUP In LIC?
FUP in LIC refers to the first premium that a policyholder is required to pay to activate their policy. This premium is due on the date specified in the policy documents and needs to be paid to keep the policy in force. Failure to pay the FUP can result in the policy being cancelled or terminated.
The FUP amount varies depending on the type of policy and the sum assured. It is important to note that FUP is a one-time payment and does not need to be paid again for the duration of the policy.
Consequences Of Non-Payment Of FUP
Non-payment of FUP can have serious consequences for the policyholder. If the FUP is not paid by the due date, the policy may lapse, and the policyholder may lose all benefits and coverage. The policy may be reinstated, but this usually requires payment of arrears, late fees, and interest.
In addition, if the policyholder dies during the grace period (the period of time after the due date when the FUP can still be paid without penalty), the death benefit may be reduced or denied. The policyholder may also be required to undergo a medical examination before the policy can be reinstated.
Conclusion
In conclusion, FUP in LIC is an important concept that every policyholder must understand. It refers to the first premium that needs to be paid to activate the policy and keep it in force. Failure to pay the FUP can result in the policy being cancelled or terminated. It is important to pay the FUP on time to avoid any negative consequences and ensure that you receive the full benefits of your insurance policy.
FAQ
What Is The Full Form Of Doc FUP In LIC?
What Does FUP in LIC Mean? FUP in LIC stands for First Unpaid Premium. It refers to the failure to pay the premium amount on the due date for the first time by the policyholder.
What Happens If I Fail To Pay The LIC Premium?
If your policy has lapsed due to non-payment of premiums within the due date, the terms and conditions of the policy contract are rendered void, till you revive your policy. Always keep your policy in force to ensure that your family gets their financial protection assured by your policy.
What Is The Policy Benefits Of LIC?
Protection: Savings through life insurance guarantee full protection against the risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.
What Is The Meaning Of The First Unpaid Premium?
Definition. First unpaid premium is the first default in paying the premium when the policy renewal falls due. Description. Under an insurance policy, the contract remains valid up until the premiums are paid regularly.
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