# Life Assurance company new measures during the pandemic



## LDFerguson (4 Apr 2020)

This week life assurance companies have started to roll out payment break initiatives on existing protection policies to assist people who have lost their income.  This is a new idea.  Previously if you stopped paying premiums, then after a period of time overdue (usually a month) the policy would lapse and you'd go off cover.  To get back on cover you'd need to submit an up-to-date Declaration of Health as well as any missed premiums.  Or you could apply for a new policy but that might be dearer as you'd be older. 

These are the ones that I've heard officially from so far.  I'm told that other life assurance companies will be following soon and I'll edit this post as more come in.  If any other brokers have heard or read announcements from other companies, post them here and I'll add them. 

*Aviva Life & Pensions (including former Friends First policies)*
Aviva are allowing a payment break of up to four months, while maintaining cover on the policy.  Missed premiums are spread over the following twelve months.  There will be an application form required for this.  I haven't yet seen the application form but at the announcement Aviva said that this would only be for people who are genuinely financially affected by the pandemic.

*Royal London*
Royal London are allowing a three month payment break, while still maintaining cover.  Missed premiums can be paid in full at the end of the three months or can be spread over the following twelve months.  No application form is required.  Requests for a payment break can be made by e-mail and must be made in advance.  Royal London are looking at each request on a case-by-case basis and no bulk requests (presumably from brokers) will be entertained. 


Regards,

Liam
www.ferga.com


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## LDFerguson (7 Apr 2020)

*New Ireland & Bank of Ireland Life*
New Ireland are offering a 3 month premium waiver to customers who have been granted a payment break on their mortgage. The 3 months premiums will not be required to be repaid at a later date. Evidence of approval of the mortgage payment break will be required. This offer also extends to non unit-linked Term Assurance policies that are assigned to a mortgage.

(Although I received notification from New Ireland, I'm assuming that Bank of Ireland Life are offering the same break, given that the two are effectively selling New Ireland policies.)


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## LDFerguson (21 Apr 2020)

*Irish Life*
Irish Life have announced Covid-19 payment break options today.  The options will be available on all non unit-linked protection - that is, Level Term Assurance, Life Term Assurance, Mortgage Protection, Pension Term Assurance, Whole of Life and Income Protection.

Clients experiencing financial difficulties will be offered the option of a three month break from premium payments while maintaining their cover and benefits in full.  The missed repayments can be repaid in one of two ways: - 

repay over the following twelve months, meaning the monthly payment will increase by 25% for 12 months; OR
repay over a 60 month period, meaning the monthly payment will increase by 5.5% for 60 months*
_* At the end of the 60-month period, the premium will return to its normal level. Clients will agree to pay back the premiums owed plus 10%. According to Irish Life, it isn't an interest rate charge, but is equivalent to an interest rate of 3.75%._


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