COVID-19 Relief: Singapore Insurers’ Support Packages to Alleviate Your Cash Flow Crunch
The COVID-19 situation is hitting the income of many businesses and individuals very hard. Are you one of them? And do you need help?
As an financial advisory firm, we support the community by collating the support packages announced* by the Monetary Authority of Singapore (“MAS”) to help individuals and SMEs who have difficulty coping with their existing insurance premium commitments. Through this effort, we are providing a quick reference to let individuals and businesses see what options are in store and each option’s benefits and applicable terms and conditions.
Insurers’ Support Packages
The support packages are listed at the end of this message. Do note that, while the insured individual or SMEs are supposed to apply directly to the respective insurers, our Financial Consultants are on hand to facilitate as well. If you know anyone who is sick, disabled or illiterate and has difficulties addressed by the support packages, i.e., vulnerable individuals, our Financial Consultants will be happy to assist further.
All applicants should bear in mind that the application is subject to the respective insurer’s approval, and each insurer’s support package has its merits and limits. Knowing the pros and cons of your insurer’s support package will help you decide whether it is worthwhile to apply for their support package.
How The Support Packages Will Help
In MAS’ announcement, here are the three main areas the insurance-related support packages will address:
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Helping individuals Defer Premium Payments for Life and Health Insurance
Individuals with life and health insurance policies may apply to their insurer to defer premium payments for up to six months while maintaining insurance coverage during this period. Premium deferment is available for all individual life and health insurance policies with a policy renewal or premium due date between 1 April and 30 September 2020. This measure supplements existing premium relief options available to policyholders, such as taking up a premium loan against the policy cash value or converting to a paid-up policy by reducing the sum assured.
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Helping individuals Set Up Flexible Instalment Plans for General Insurance
Individuals holding general insurance policies, such as for property and vehicles, may apply to their general insurance company for instalment payment plans while maintaining insurance protection. By working with their insurance company on an appropriate instalment plan, policyholders can pay their premiums in smaller amounts and enjoy coverage for the paid-up period, instead of paying a lump sum premium for the entire policy period at the start.
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Assisting Businesses with Insurance Premium Payment
Corporates, including SMEs, holding general insurance policies that protect their business and property risks may apply to their insurer for instalment payment plans. General insurance companies stand ready to work with their corporate customers so they can pay their premiums in smaller amounts and enjoy coverage for the paid-up period, instead of paying a lump sum premium for the entire policy period at the start.
Links to Details of Support Packages
Below are the links to the pdf documents we have prepared of the insurers’ support packages. The list will be updated when more insurers announce their support packages, so do come back often to check for updates.
Life Insurers
If you need assistance to understand or apply for the insurers’ support packages, do contact your Financial Alliance Consultant. Alternatively, you may contact us at feedback@fa.com.sg, and we will assign a Financial Consultant to assist you. We are in this together.
Stay vigilant. Be safe. We wish you good health.
Footnote:
* On 31 March 2020, the Monetary Authority of Singapore (MAS), together with the Association of Banks in Singapore (ABS), the Life Insurance Association (LIA), the General Insurance Association (GIA), and the Finance Houses Association of Singapore (FHAS), announced a package of measures to help ease the financial strain on individuals and SMEs caused by the COVID-19 pandemic. The package of financial measures complements the initiatives in the Government’s Unity Budget and Resilience Budget to preserve jobs and support enterprises and households.