Deferment of premium payment for life insurance

Here are some frequently asked questions (FAQs) relating to the deferment of premium payment for life insurance/family takaful due to the Covid-19 pandemic.

Q: What is deferment of premium payment for life insurance/family takaful?

A: It is a grace period of 90 days granted by life insurers and family takaful operators to pay any premium or contribution subject to terms and conditions by each life insurer or family takaful operator.

Q: Who is entitled to this deferment of premium/contribution payment due to Covid-19?

A: Policyholders who are affected directly by Covid-19 are entitled to the deferment of premium payment. This applies to all policies with premiums due from March 18,2020 to Dec 31,2020. Policyholders must contact their respective life insurer or family takaful operator for further details on eligibility for the deferment of premium payment.Q: Do I need to apply?

A: Yes. Policyholders need to apply for the deferment from their respective life insurer or family takaful operator. One may apply for the deferment of premium payment from April 1,2020 to Dec 31,2020.

Q: When is the deferment period?

A: The deferment of premium payment of 90 days will be given from the last premium due date once approved by the insurer/takaful operator.

Q: How will this benefit policyholders?

A: Policyholders are entitled to this deferment of premium payment due to Covid-19 through a mechanism such as a no-lapse guarantee, extension of grace period or any other means that keep the policy/certificate intact during the deferment period.

Q: What happens if policyholder dies within the deferment of 90 days?

A: In the event death occurs within the deferment period, the claim payable will be deducted by the total outstanding premium, including the amount due, within the deferment period (plus any other deductible based on the terms of the policy).

Q: Can the 90-day grace period be applied to policyholders who have outstanding premiums before the commencement of the deferment period?

A: The grace period of 90 days is applicable to policyholders who do not have outstanding premiums at the time of application and if the insurance policy/takaful certificate has not lapsed. For investment-linked policies, the affected policyholders who have been granted the deferment measure will receive a 90-day no-lapse guarantee if the policy account value is insufficient to pay cost of insurance/tabarru and other charges.