Work out insurance lapse impact instantly with clear inputs, formula shown and shareable results.
A lapsed policy loses its cover and, in the early years, most of the premiums paid. Reviving it costs the arrears plus interest and may require fresh medical evidence — but the cover restored per unit of revival cost is usually far better value than buying a new policy at your current age.
Revival cost
Revival cost = Premium arrears x (1 + Interest rate %)
Value test
Cover restored per unit cost = Sum assured / Revival cost
Indicative estimate. Revival terms, interest rates, windows and underwriting requirements are set by the insurer and regulator. Not insurance advice.
Commonly two to five years from the first unpaid premium, depending on the regulator and product. After that the policy cannot be revived.
Often yes, especially for larger sums assured or longer lapses. A deterioration in health can lead to revival being refused or loaded.