Though you can revive your policy but discontinuing a policy is never beneficial for policyholder hence policyholder should not discontinue their policies as ULIP insurance India policies can generate good results only if they are continued for full term.

1. IRDA allowed higher revival period for ULIPs
If you had bought Unit-Linked Insurance Plan (ULIP) and stopped to pay premium due
to volatile market conditions and let them lapsed then now you can revive them;
as now Insurance Regulatory and Development Authority (IRDA) has allowed that
policyholder can revive there discontinued policies within two years of discontinuance
but not later than the expiry of the lock-in period.
Insurers will have to also provide minimum guaranteed return equivalent to the saving
account rate of State Bank of India (SBI) which is currently at 4% on the discontinued
policies.
Apart from fixing minimum guarantee return IRDA has also capped the fund
management charge on discontinued policies at 0.50%; which increases the upside for
policyholder if market does well.
Though you can revive your policy but discontinuing a policy is never beneficial for
policyholder hence policyholder should not discontinue their policies as ULIP insurance
India policies can generate good results only if they are continued for full term.
And it is not prudent to discontinue policy mid way as insurance policies have front
ended charges and you have already paid the bulk of the charges in the first year of the
policy.
This move of IRDA is not only beneficial for policyholders but it will also give fresh
lease of life to insurers as since in September 2010 when IRDA’s norms on ULIPS

2. came in force insurers are struggling with the sales of new policies; as 20% policies has
been lapsed.
This move can revive some policies which otherwise canceled and insurers will earn
fund management charge on discontinued policies.
[Source: https://www.bajajallianz.com/Corp/ulip-plans/ulip.jsp]