With the COVID-19 pandemic, many business owners and individuals are currently struggling financially to stay afloat. However, despite the global pandemic hitting Singapore, there are many insurance companies and financial support given to both SMEs and individuals. During this time of crisis, financial aid can be difficult to come by. This is where defer repayment loans can help you during this difficult period.
Monetary Authority of Singapore (MAS) announced that individuals that own Life and Health insurance policies can seek their insurers to defer premium payments for a total of 6 months. This premium deferment will be available from 1 April and 30 September 2020. Deferment of repayment loans includes debt consolidation loan, car loans, education, renovation and many others. MAS has also waived total debt servicing ratio for individuals seeking to take out mortgage equity withdrawal loans. This applies to loans for a wide range of industrial, commercial and residential properties, including equity term loans and more.
To ensure that your insurance premium payments can be deferred in Singapore, you should check your insurers and their eligibility criteria. Once you have done so, you can apply for their deferment form online, which can be downloaded, filled up and emailed to the insurer.
Preparing the relevant documents is important, and must not be missed out in your application. This means insurers might ask for an official company letter, an announcement through email, or your CPF contribution statement. For self-employed individuals or business owners, evidence is required to show a significant loss in income.
To know more about how different insurance companies are giving out additional benefits during this COVID-19 period, feel free to read below.
Aviva’s extensive summary coverage of COVID-19 is eligible for customers who may have lost their jobs during the COVID-19 period. It also covers:
- Individuals who have experienced an income drop of 30% or more for 3 consecutive months
- Placed on extended no-pay or indefinite leave
- Hospitalised for COVID-19 or paying for COVID-19 hospitalisation fees for immediate family members.
Aviva’s plans are mainly eligible for patients that have not travelled out of Singapore from 27 March 2020.
Link to learn more: https://www.aviva.com.sg/en/novel-coronavirus-notice/premium-deferment
2. NTUC Income
NTUC’s Income Support Scheme allows for customers and individuals with up to 6 months of premium deferment. To do so, you can submit the relevant documents through their programme website. This premium deferment program is eligible for individual customers that are in the affected industries such as aviation, tourism, transportation and many others. It is also eligible for individuals facing financial difficulties directly resulted by the COVID-19 pandemic.
NTUC Income also extensively covers:
- Pay cuts or loss of income by 25%
- Forced no-pay leaves
- Involuntary business closure
Link to learn more: https://www.income.com.sg/support-scheme
3. Tokio Marine
The eligibility to apply for Tokio Marine’s premium deferment are customers who have suffered a job loss or reduced income due to COVID-19. Such customers who need to have their policies in-force as of 31 March 2020. This is applicable to investment-linked plans and individual traditional life policies.
The eligibility of their deferred premium scheme applies to:
- Involuntary no-pay leaves
- Pay or income reduction
- A decline in business or self-employed individuals
Link to learn more: https://www.tokiomarine.com/sg/en/about-us/media-news/gocare-deferred-premium-scheme.html
4. Great Eastern
Great Eastern provides a registration form and email so that you can complete their Deferment of Premium Payment Programme (DPP). To be eligible, the following criteria must apply to the individual:
- The policyholder has reduced or loss of monthly income due to COVID-19
- History of good repayment
- Policy premiums are paid up-to-date
- No outstanding premium as on the application date
Link to learn more: https://www.greateasternlife.com/sg/en/personal-insurance/get-help/frequently-asked-questions/policy-servicing.html#deferment
If you have obtained an insurance plan with Prudential prior, their insurance premium payment is automatically deferred. This means should cash payment not be received, or GIRO and credit card reduction be unsuccessful, the grace period will be extended for another 180 days.
This extended grace period applies to all policyholders with premiums due from 1 April to September 2020 (both dates inclusive).
Link to learn more: https://www.prudential.com.sg/others/-/media/Prudential/PDF/FAQs-on-Extension-of-Premium-Payment-Grace-Period