L&G’s payment holiday lets customers take a three month break from their monthly premiums
The new option has been launched after the FCA set out guidelines to treating customers facing financial difficulties due to COVID-19.
Providing payments are up to date or only one payment has been missed, L&G said customers will remain covered for 60 days from the date of the first missed payment (subject to policy terms and conditions).
The insurer will collect the three months premium due once the payment holiday has ended and regular monthly premiums will automatically restart at the end of three months.
L&G said on its website: "We'll collect the amount owed around the same time as your next monthly premium. This may show as one payment or two separate payments within a few days of each other, on your bank statements. If you prefer, you can contact us at least 16 days in advance and pay the three months' premiums using your credit or debit card."
L&G added that if customers restart their regular payments and pay their missing premiums within your 60 day time period, there will be not change to their cover or usual premiums. There will be no need for additional underwriting.
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