The correct answer is C. Both A & B.
Instalment revival is a facility offered by life insurance companies to policyholders who have lapsed their policies. Under this facility, the policyholder can revive their policy by paying the arrears of premium in instalments. The number of instalments and the amount of each instalment will be decided by the life insurance company.
The policyholder can avail of instalment revival if they are unable to pay the full arrears of premium in lumpsum. They can also avail of instalment revival if the policy could not be revived under special revival scheme.
The special revival scheme is a facility offered by life insurance companies to policyholders who have lapsed their policies for a short period of time. Under this scheme, the policyholder can revive their policy by paying a higher premium than the normal premium.
Instalment revival is a good option for policyholders who are unable to pay the full arrears of premium in lumpsum. It is also a good option for policyholders who want to revive their policy under the special revival scheme but are unable to pay the higher premium.
However, it is important to note that the interest rate on instalment revival is higher than the interest rate on normal premium. So, the policyholder will have to pay more interest if they avail of instalment revival.
It is also important to note that the policyholder will have to pay the full arrears of premium, plus interest, within a specified period of time. If the policyholder fails to pay the arrears of premium within the specified period of time, the policy will lapse again.