Instead of cancelling a policy 30 days after the first missed policy payment, Aegon has extended it to 90 days
Following FCA guidelines, Aegon has adapted its terms and conditions to allow customers to defer premium payments for three months to help customers who may be struggling financially due to COVID-19.
Aegon said: "If customers and/or their financial adviser decide that a payment deferral would be in their best interests, due to the exceptional nature of the current circumstances, we can offer a temporary variation to a customer's contract terms. Instead of cancelling their policy 30 days after their first missed policy payment, we can extend this to 90 days on a one-off basis. This will effectively allow customers to defer a maximum of three monthly policy payments. During this time their cover will remain in place and will be available if they need to claim. If they have a valid claim during this time, we'll deduct the total amount of unpaid policy payments from their final claim payment."
At the end of the agreed payment deferral period, customers will need to repay all missed policy payments by either paying double payments for the same number of months they deferred payment for, or by re-paying the deferred payments in a single lump sum at the end of the 90-day deferral period, Aegon said.
"If customers don't repay their deferred policy payments as agreed, their policy will stop and we'll be unable to consider any claims," it added.
"As long as customers repay their deferred policy payments in line with their agreed repayment plan, adviser commission payments will remain unaffected."
Aegon added: "We'd always recommend our customers take financial advice before changing their policy and remind them that as an Aegon customer they have access to Policy Plus - our range of support services - at no extra cost. This provides 24/7 counselling and support for you and your family on a wide range of issues, including finances, debt issues, bereavement, medical diagnosis, emotional health, relationships, family concerns and legal issues."
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