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Details on Singapore’s Insurance Premium Deferment Schemes

Updated 1st June 2020

SINGAPORE

In view of the economic situation, additional financial support for individuals has been initiated, to help everyone cope with the pandemic and its fallout.

Read more about the announcement by the MAS here.

EXTRACTED FROM THE ARTICLE:

Defer Premium Payments for Life and Health Insurance

11   Individuals with life and health insurance policies may apply to their insurer to defer premium payments for up to six months while maintaining insurance coverage during this period. Premium deferment is available for all individual life and health insurance policies with a policy renewal or premium due date between 1 April and 30 September 2020.  This measure supplements existing premium relief options available to policyholders, such as taking up a premium loan against the policy cash value or converting to a paid-up policy by reducing the sum assured.

Flexible Instalment Plans for General Insurance 

12   Individuals holding general insurance policies, such as for property and vehicles,  may apply to their general insurance company for instalment payment plans while maintaining insurance protection. By working with their insurance company on an appropriate instalment plan, policyholders can pay their premiums in smaller amounts and enjoy coverage for the paid-up period, instead of paying a lump sum premium for the entire policy period at the start.

Refer to the information below for the details from each insurer:

AIA

Who’s eligible?
AIA will be providing a Support Programme to our policyholders facing financial difficulties as a result of the COVID-19 pandemic.

You are eligible to make an Extension of Grace Period Application if:

  • you are the policy owner or trustee or assignee of the policy you wish to apply extension of grace period (“EGP”) for; and

  • your policy is an Eligible Policy that has not lapsed; and

  • you are facing Financial Difficulties due to COVID-19 (as assessed by AIA Singapore in its absolute discretion).

“Eligible Policy” means an individual life and health insurance policy with a policy renewal or premium due date between 1 April and 30 September 2020 (both dates inclusive).

“Financial Difficulties” means the following circumstances:

  • you are self-employed in industries affected by COVID-19, such as – Tourism, – Travel / Transportation, – Arts & Culture, – Food Services,

  • you have lost your job or your income has been reduced due to COVID-19, examples being – pay being reduced, – on leave without pay indefinitely, – lowered business income (for self-employed),

  • such other circumstances as may be determined at the absolute discretion of AIA Singapore.

How does the deferment work?

This Support Programme will extend the grace period for payment of premiums due up to 180 calendar days for customers who are financially affected by COVID-19, subject to applicable terms and conditions.

No interest will be levied on premiums that are not paid during the EGP.

To apply:

Submit this form or contact your AIA Insurance Representatives for assistance.

Notes

Policyholders shall pay all premium(s) due and payable during the EGP before the end of the EGP. Failure to pay all premium(s) due and payable by the end of the EGP may result in the trigger of Non-Forfeiture Provisions (where applicable in the policy contract) and the policy becoming lapsed.

For avoidance of doubt, the EGP is not a waiver of the premium(s) payable for the polic(ies) with AIA Singapore.

AVIVA

Who’s eligible?

Policyholders of any Aviva Life and/or Health policy(ies), whose premium due date is between 1 April 2020 and 30 September 2020, and during this period:

  • Have lost their job due to COVID-19;

  • Experience a sustained income drop due to COVID-19 (such as for small business owners, private hire drivers, etc);

  • Are put on indefinite/extended no-pay leave due to COVID-19 (such as for airline staff, entertainment venue staff, etc); and/or

  • Are hospitalised due to COVID-19 and/or are paying for COVID-19 related hospitalisation bills for immediate family members. This is provided the hospitalised patient has not travelled out of Singapore since 27 March 2020.

How does the deferment work?

Premiums will be deferred for 6 months from the date the deferment is approved. Payment only needs to be made at the end of the deferment period. There will be no interest charged for the deferment.

Example 1:  A policyholder with a monthly premium payment of S$100 has a premium payment due on 30 April. He applies for and is approved for premium deferment on 15 April 2020. In September 2020, he’ll receive a notification for the premium for the past 6 months (April – September). There will be no interest charged. Upon collection of full premium payments in arrears, his monthly premium cycle will resume from 30 October.

Example 2:  A policyholder has an annual premium due on 1 May 2020. He applies for and is approved for premium deferment on 20 April. His premium due date will now be shifted to 1 November 2020. There will be no interest charged. The following year, his premium cycle will revert to 1 May.

To apply:

Complete the Aviva COVID-19 Premium Deferment Form and email the form to cs_life@aviva-asia.com via the registered email address you have with Aviva or mail in a hardcopy.

Note:

If the premiums remain unpaid at the end of the deferment period, policy terms will be applied. That is, the policy(ies) will lapse, be converted to paid-up, or an automatic premium loan will be applied.

AXA

Updated 1st June 2020

Previously, eligible policyholders may apply to defer premium payments for Life and Health insurance policies until 30 September 2020.

Now, eligible policyholders may apply to defer premium payments for Life and Health insurance policies for a period of 6 months.

Application period for the Support Program is open from now to 30 September 2020 (both dates inclusive).

The 6-month deferment period shall apply to all approved applications from the start of the premium deferment. For policies that have been approved prior to this revision, the deferment period will automatically be extended to 6 months from the start of the premium deferment. Policyholders will be notified by email.

Who’s eligible?

Existing individual Life and Health insurance policies with premium due date between 1 April 2020 to 29 September 2020 (both dates inclusive) can apply to defer premium payments.  (Note: For policies which premiums are payable through CPF, there has to be an unsuccessful deduction in order for the policyholder to be eligible to apply.)

  • This is only for individuals, hence corporate policyholders are not eligible to apply.

  • Policyholder has a history of good payment and there is no outstanding premium as of the date the policyholder applies for the Support Program.

  • For an investment-linked policy, it is not on Premium Holiday as of the application date.

Policyholders must provide satisfactory evidence of the following:

  • Unemployment due to retrenchment by employer affected by COVID-19 pandemic

  • Compulsory unpaid leave imposed by employer affected by COVID-19 pandemic

  • Monthly basic salary significantly reduced by employer affected by COVID-19 pandemic

  • For self-employed with businesses that suffered significant loss of income due to COVID-19, policyholder must show proof of ownership in the company (e.g. via ACRA) and proof of significant loss of income (e.g. past 3 months income statements, IRAS statement for the company or any relevant documentation that can substantiate the loss of income)

  • For others who are self-employed (e.g. freelance photographers) and suffered significant loss of income due to COVID-19, policyholder must show proof of significant loss of income (e.g. past 3 months bank / income statements, IRAS statement or any relevant documentation that can substantiate the loss of income)

Eligibility criteria to apply for flexible installments for General Insurance

a.       All General Insurance Plans with minimum S$500 premium.

b.      Individual or SME policyholders using DBS or Citibank credit cards.

How does the deferment work?

In relation to Life and Health Insurance policies, the outstanding premiums due during the eligible period are to be paid in full by end of the deferment period.

If you did not pay the outstanding premiums by end of the deferment period for your Life or Health policy, your policy and coverage will lapse. You may apply for a reinstatement of your policy if your policy contract allows, subject to the conditions stated in the reinstatement clause of your policy. You will be liable for the pro-rated coverage of your health policy for the period of the premium deferment, and you will need to make payment in full by 30 days following the end of the premium deferment.

If you did not pay the outstanding premiums by end of the deferment period and your participating policy has acquired cash value, the Automatic Premium Loan will be activated, and interest will be charged accordingly.

If you did not pay the outstanding premiums by end of the deferment period and your investment- linked policy is eligible for Premium Holiday, your policy will automatically be placed on Premium Holiday. Please refer to your policy contract for the terms and conditions for Premium Holiday.

Additional terms and conditions for the deferment of premium payments

i. The deferment period can only be applied to each Life or Health Insurance policy once.
ii. No late payment interest will be charged throughout the deferment period.

iii. Policyholders can resume paying their premiums any time within the deferment period.

However, please note that when premiums have been received, the deferment period will cease for the said policy, and the deferment period will not apply again to the said policy.

To apply:

For Life and Health policies:

Complete and sign the AXA COVID-19 – Service Request Form or email to comsvc@axa.com.sg.

For an installment plan to pay General Insurance policy premiums: Please visit https://www.axa.com.sg/payment/. Fill in your policy and personal details and select either DBS or Citi credit card Installment Payment Plan (“IPP”).

Note:

While eligible policyholders can apply for the AXA COVID-19 Premium Payment Support Program, please note any application to defer the payment of premiums or to pay premiums through installments, is subject to AXA’s approval.

GREAT EASTERN

Who’s eligible?

  • Policyholder’s monthly income has been reduced or loss of job due to COVID-19.

  • Individual policy with premium due date or policy renewal date falls on any date between 1 April and 30 September 2020 inclusive.

  • Policyholder has a history of good payment, that is policy premiums have been paid up-to-date and there is no outstanding premium as of application date.

How does the deferment work?

  • What happens at the end of the deferment period?

  • The outstanding premiums(s) due during the deferment period are to be paid within 30 days from the expiry of the DPP Programme.

  • Policyholders can list multiple policy numbers in a single application form.

To apply:

Policyholder may email DPP-sg@greateasternlife.com

MANULIFE

Who’s eligible?

All policy holders of Manulife.

How does the deferment work?

Manulife allows grace period of up to six months in total, to allow more time for customers to make premium payments. This extension is applicable to premium payments that are due between 1 April and 30 September 2020.

To apply:

Please contact your Financial Consultant or email to service@Manulife.com or call 6833 8188 (9am – 6pm, Mondays to Fridays, excluding public holidays).

PRUDENTIAL

Who’s eligible?

This extended grace period will apply to all policy holders who have policies with premiums due between 1 April to 30 September 2020 (both dates inclusive).

How does the deferment work?

Throughout the 6-months grace period, customers will continue to receive coverage from their plans. It applies to all products and Prudential will automatically extend the grace period to 180 days for policyholders. You will need to make a full payment on your outstanding premiums before the 6-month extension period is over.

The grace period of 180 days is from the date your monthly premium becomes due. Any payment you make will be used to pay off the longest outstanding premium first. At any point of time, you can have a maximum of 6 months grace period for premiums due between 1 April to 30 September 2020 (both dates inclusive). You will need to make a full payment on your outstanding premiums before the 6-month extension period is over.

For example: Customer A has a policy with premium of $100 per month (monthly frequency). As a result of the extended grace period of 6 months, he/she is able to hold back the premium for a period of 6 months ($600 in total). If he/she is able to make a payment within any of the months during the grace period, the premium collected will apply to the longest outstanding premium first. For example, if he/she makes a payment of $100 in the month of July, this premium will be used to pay for April. In this example, the customer will need to make a full payment on their outstanding premiums before October as there was a premium paid in July which covered April’s premium.

To apply: There is no need to. It applies to all products and Prudential will automatically extend the grace period to 180 days for policyholders.

Note: If outstanding premiums are not received after the extended period, depending on the features of your policy, it will either:

  • Lapse, for policy with no cash value

  • Automatically activate Automatic Premium Loan (APL), if there is cash value

  • Automatically activate Premium Holiday for ILP policies To reinstate the policy, you will be required to apply for the usual reinstatement. This will include a full payment of premiums for full reinstatement of benefits.

TOKIO MARINE

Who is eligible?

  • Policyholders undergoing financial hardship

  • Policies must be in-force as at 31 March 2020

How does the deferment work?

Assistance provided through a 6 months extension of grace period for premiums due between 1 April 2020 to 30 September 2020. No further details mentioned.

To apply: 

Fill in this form and email it to customercare@tokiomarine-life.sg

Notes:

For more FAQs

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