The premium deferral offer is available to customers with personal or business individual protection policies
Following the FCA's recent guidelines, Aviva individual protection customers, who are struggling financially due to COVID-19, can now defer their premiums for three months before spreading these payments over the following nine months.
This means customers with life insurance, critical illness, income protection, over 50s or whole of life policies can take a break from payments while retaining their current benefits and levels of cover. The premium deferral offer is available to customers with personal or business individual protection policies.
Aviva said premium deferrals are available for customers who started their policy before 1 April 2020 and have already made at least one payment, and who:
- have been made unemployed after 1 March 2020; or
- are self-employed and unable to work or trade due to COVID-19, and have not yet received the 80% payment offered by the government or are not eligible for this payment; or
- have been furloughed by their employer and have not yet received the 80% payment offered by the government; or
- have a business protection or relevant life policy where their business has furloughed at least 50% of employees and has not yet received any government funding.
The new premium deferral offer will not apply where customers already have the option to miss or defer payments within the existing terms and conditions of their policy, Aviva added.
At present, customers can apply for a premium deferral up to 18 August 2020. They will be able to request a premium deferral by visiting here.
There will be no changes made to any policy benefits or the sum assured, ensuring cover remains in place during the period in which payments are deferred.
Aviva said, at the end of the three-month period, the deferred payments will be collected over a period of nine months or the remaining term of the policy, if shorter. The balance of deferred payments can also be paid as a lump sum by customers if they want to pay more quickly.
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