LDFerguson
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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
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