In a notification dated 26 August, the Insurance Regulatory and Development Authority of India (Irdai) clarified that you can revive a lapsed unit-linked insurance policy (Ulip) within 2 years of lapse, regardless of the lock-in period.
LOCK-IN PERIOD IN ULIP
Ulips come with a lock-in period of 5 years, which means you cannot liquidate your policy for the first 5 years. However, you can choose to stop paying premiums during this period. The insurer will then give you a grace period of 30 days to pay the premium, after which it will send a notice in 15 days and give you another 30 days to pay.