Non-payment of life insurance premium
1. What can I do if I am unable to pay my life insurance premiums by the premium due date?
If your premium due date falls between 1 April 2021 and 31 December 2021, you can apply for Deferment of Premium Payment (DPP) under Scheme 5 to defer premium payments by up to six months. Please note that each customer shall only qualify for this Scheme 5 once between 1 April 2021 to 31 December 2021 for each Scheme 5 Policy and the Scheme 5 Policy must not be the same Regular Premium Plan and Rider(s) approved under Scheme 2. If the customer has applied for a Scheme 5 policy prior to 1 April 2021, all premiums due under the Scheme 5 Policy applied prior to 1 April 2021 must also be re-paid to Income in full to be eligible for this Scheme 5 Policy.
2. What happens if I am unable to settle the outstanding premiums at the end of the deferment period?
If you continue to face difficulty with premium payment after the end of the deferment period, you may consider one of the following:
- Convert the policy to a reduced paid-up
- Advance your outstanding premiums as an automatic premium loan (APL) but with interest waived for up to six months.
- Opt for our instalment repayment plan (IPP). Approvals are subject to terms and conditions.
3. What is the default non-forfeiture option provided for in my policy?
For policies taken up before April 1994 or purchased with CPF funds or assigned to Official Assignee / Insurance Company / Bank, the default option is “Automatic Paid-up”.
For policies without cash value, the default option is “Automatic termination”.
For all others, the default option is “Automatic Premium Loan (APL)”.