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These are unsettling and challenging times, with widespread financial impacts on people who may have lost their jobs or experienced a significant reduction in income.
I’m proud to say that, unlike some other parts of the insurance industry, Ireland’s main life insurance providers want to work with you if you are in this situation to find a suitable solution.
In this article, I look at the help on offer from each provider:
During these three months, no premiums will be payable, but cover will continue to be in place.
At the end of the premium deferral period, you can repay the premium arrears either a) at that point or b) spread out over the upcoming 12-month period. You can choose the option that best suits.
Here’s an example of how it will work if you spread the repayment of the arrears over 12 months:
Royal London will pay any claim during the premium deferral period assuming pay the arrears.
To set-up a premium deferral period, all Royal London need is a written instruction. You or your broker can send the direction. In the case of a joint life or dual life policy, it would be helpful if both parties can sign the written instruction.
Reinstatement allows you to stop making payments for up to 100 days.
Once you pay the arrears, Royal London will put your policy back in force automatically, without asking any health questions.
To avail of this option, simply cancel your direct debit but DO NOT CANCEL your policy in writing. If you cancel your plan, you cannot reinstate (a fancy way of saying put your policy back in place).
If you are concerned about paying your monthly protection premium, Aviva may be able to offer you a payment deferral of four months.
During the payment deferral period, Aviva would continue to offer full cover as usual.
At the end of the payment deferral period, Aviva will adjust your premium upwards so that you make ‘Deferral’ repayments over the following 12-month period.
Example:
You can apply for the payment break by completing this application form.
Terms and Conditions apply, here are some of them:
New Ireland is offering a three-month Mortgage Protection premium waiver to customers who have a payment break on their mortgage. You don’t have to repay the three month premiums.
Terms and Conditions apply, here are some of them:
How to apply:
Send an instruction signed by each policyholder and evidence of approval of the mortgage payment break to existingbusiness@newireland.ie
The request must reference the New Ireland policy number and should be received in New Ireland no later than ten working days before the next premium due date.
New Ireland customers have 30 days of grace where they remain covered after their payment due date.
After this period, you have 60 days to reinstate their policy, but…
DURING THESE 60 DAYS YOU ARE NOT ON COVER.
Zurich Life has not introduced any COVID19 specific measures, but they have always had a three-month reinstatement clause.
You can stop paying your premiums for up to 3 months, but you have to pay the full arrears within the three months to prevent the cancellation of your policy.
Your policy can be reinstated even if a claim has arisen for a Life Cover (Lump Sum), Life Cover (Monthly Income), Terminal Illness, Serious Illness, Cancer Cover, Angioplasty, Partial Payment Serious Illness, Partial Payment CancerCover or Permanent Total Disablement (Own Occupation).
As with Royal London above, DO NOT CANCEL YOUR POLICY, cancel the direct debit instead.
Nothing COVID19 specific but similar to Zurich Life above, they have a three-month reinstatement policy.
If you are experiencing financial difficulties caused by COVID–19 and you’re struggling to pay your policy premiums, please get in touch with me (nick at lion dot ie) even if you’re not a client of ours.
I’ll do all I can to help.
Keep safe.
Nick
As Ireland's leading life insurance broker, we specialise in comparing the rates and policies from the top five Irish life insurance providers and offering the very best value quotes to suit the individual needs of our clients. Our expertise lies in finding a suitable insurance plan for those with specific needs, be it a particular illness, occupation or claim history, we've got you covered in every sense!
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