Prabhu Mahalaxmi Life Insurance Announces Significant Renewal Fee Discount

7th November 2025, Kathmandu

In a crucial move aimed at empowering its policyholders to restore their lapsed life insurance policies, Prabhu Mahalaxmi Life Insurance has unveiled a limited-time, highly attractive Renewal Fee Discount Offer.

Prabhu Mahalaxmi Renewal Fee Discount

Life insurance is a cornerstone of responsible financial planning, offering a crucial safety net for your loved ones. However, life can sometimes present financial hurdles, leading to the unfortunate lapse of an insurance policy due to unpaid premiums. The good news is that Prabhu Mahalaxmi Life Insurance Limited (PMLIL) consistently offers revival schemes to help policyholders restore their coverage and secure their future.

Prabhu Mahalaxmi Life Insurance recently announced a special, limited-time revival scheme with attractive interest discounts on late fees for lapsed policies. This article serves as your comprehensive guide to the scheme, outlining the discounts, eligibility criteria, exclusion of certain plans, and the essential steps for policy revival. Reinstating a lapsed policy is often more beneficial than purchasing a new one, as it typically retains the original terms and established bonuses, making this a vital opportunity for policyholders.

Understanding the Late Fee Discount Structure

Prabhu Mahalaxmi Life Insurance has structured its revival scheme to provide maximum relief to policyholders, with the discount rate directly linked to the duration your policy has been lapsed. This tiered approach ensures fairness and provides a significant incentive for renewing policies that have been inactive for a shorter period. The scheme offers a substantial reduction in the accrued interest (late fee) that must be paid alongside the outstanding premiums.

The discount percentages on the late fee (interest) are generally structured as follows, based on the total time elapsed since the last unpaid premium due date:

75% Interest Discount: Applicable to policies that have lapsed for less than two years. This is the highest level of relief, targeting those policies that have only recently gone out of force.

50% Interest Discount: Applicable to policies that have lapsed for more than two years but less than three years. This mid-range discount still offers considerable savings on accumulated late fees.

25% Interest Discount: Applicable to policies that have lapsed for more than three years. While the policy has been inactive for an extended period, this discount still offers a helping hand in making the revival affordable.

This revival window is a golden opportunity to regain financial protection without the burden of the full compounded interest, which can make a policy revival seem out of reach. Policyholders must move quickly, as these schemes are always time-bound, often lasting for only a few weeks. It is crucial to check the company’s official notice or contact a branch to confirm the exact start and end dates of the current scheme.

Exclusions and Important Policy Conditions

While the scheme is designed to be broadly inclusive, it’s essential to understand the specific exclusions and conditions that apply. Not all Prabhu Mahalaxmi Life Insurance policies are eligible for the interest discount.

Ineligible Policy Schemes
According to recent announcements regarding similar past schemes, certain specific plans are typically excluded from the late-fee discount offer. Policyholders should confirm if their specific plan falls under these exceptions, but generally, two plans that have historically been ineligible are:

• Samunnati Jeevan Beema Yojana
• Double Dhamaka Beema Yojana

If you hold a policy under one of these excluded schemes, you can still follow the standard policy revival process, but you would likely not be eligible for the announced late-fee interest discount. It is always best practice to consult with a Prabhu Mahalaxmi Life Insurance representative to verify the eligibility of your specific plan.

Critical Scheme Conditions
Beyond the exclusions, the scheme is subject to a couple of crucial conditions designed to prevent misuse:

One-Time Benefit: The discount on late fees can generally be availed only once during the entire policy term. This means that if your policy lapses again after being revived under this scheme, you will not be granted a second interest waiver.

Surrender Penalty: If a policy is revived under this discount scheme and subsequently surrendered within two years of the revival date, the entire amount of the interest discount previously granted will be withdrawn (deducted) from the final settlement amount. This condition encourages policyholders to commit to maintaining the policy after its revival.

The Comprehensive Policy Revival Process

Reviving a lapsed policy with Prabhu Mahalaxmi Life Insurance involves more than just paying the outstanding premium and discounted interest. It is a formal process that ensures the continued insurability of the policyholder.

1. Payment of Dues
The first and most direct step is calculating and paying the necessary financial obligations:

Outstanding Premiums: Pay all due premiums from the date the policy lapsed up to the date of revival.

Discounted Late Fees: Pay the compounded interest (late fee) on the outstanding premiums, after applying the eligible discount (75%, 50%, or 25%) based on the lapse period.

2. Underwriting and Medical Requirements
Insurance companies must assess the risk before reinstating coverage, especially since the policyholder’s health condition may have changed since the policy lapsed. This is where underwriting comes into play.

Revival Application: The policyholder must submit a formal application for policy revival, confirming their health status.

Statement of Good Health: For policies lapsed for a short period (typically six months or less), a simple Statement of Good Health form may suffice, where the policyholder declares they have not suffered any significant illness or injury.

Medical Examination: For policies lapsed for a longer duration (often over six months to a year, or depending on the Sum Assured and the policyholder’s age), the company may require a medical examination by a designated doctor. This cost is usually borne by the policyholder. The need for a medical exam, or full underwriting, increases with the duration of the lapse and the sum assured.

3. Policy Approval and Reinstatement
Once the financial dues are cleared and the company’s underwriting team reviews the medical documents (if required) and approves the application, the policy will be formally reinstated. The policy then continues with its original commencement date and benefits, including any accrued bonuses, effectively restoring your financial security.

Why Revive Your Policy? The SEO Value of Restoration

The decision to revive a policy during a special discount scheme is not just about saving money on late fees; it’s a strategic financial choice that reinforces the SEO-friendly value proposition of life insurance.

Retaining Original Premium Rate: When you revive a policy, you keep the original, lower premium rate determined by your age at the time of the initial purchase. A new policy would be based on your current, older age, resulting in significantly higher future premiums.

Preserving Vested Bonuses: Revival ensures that any bonuses declared and vested in the policy before it lapsed are retained, which would be lost if the policy were surrendered.

Immediate Coverage: A revived policy offers a quicker path to full coverage compared to a new policy, which often involves a waiting period for certain conditions.

This limited-time scheme from Prabhu Mahalaxmi Life Insurance is a powerful call to action for policyholders to secure their long-term financial plan. By taking advantage of the reduced late fees, policyholders can cost-effectively restore a valuable asset and guarantee the financial well-being of their beneficiaries.

For More: Prabhu Mahalaxmi Renewal Fee Discount