Since COVID-19 started, we have been working with various insurers to get some premium deferrals for our clients. Below is a review of various companies and how they are responding to the COVID-19 request to offset premiums as of April 7, 2020
SUN LIFE
Sun Life is offering a 90 day premium deferral for clients (including business owners) experiencing direct financial hardship as a result of the COVID 19 pandemic due to:
- illness/quarantine
- lay-off or job loss
- the need to be absent from work while fulfilling caregiver needs (childcare or family member with COVID-19)
This exception process is available for all life and health insurance policies issued on or before March 15, 2020, with the exception of Personal Health Insurance. This exception process is in place until May 31, 2020.
- Premium deferrals are interest free
- Sun life will contact the client on day 80 to make arrangements for repayment.
- Business owners and individuals can apply
- Insurance is inforce even while premium deferrals are in place.
MANULIFE
If customers are struggling financially, due to layoffs and job loss as a result of coronavirus, Manulife will consider an extension of their grace period to 90-days for their insurance premium payment, on a case by case basis (see details below).
- From April 7 2020 until June 30, 2020, for individual insurance policies (includes life and living benefits) that were issued prior to March 1, 2020 and upon client request due to financial hardship created by the coronavirus, Manulife will extend the grace period to 90 days for those products that have a grace period less than that. Note that grace periods vary by product, but most are 30 days in length. If a product currently has a grace period longer than 90 days, as outlined in the customer’s contract, then the longer grace period will prevail. Note that this applies to both individually owned and corporately owned policies.
- During the grace period, the policy continues and is still in force.
- Premiums are being deferred (not waived) and need to be paid by the premium payment date extension for a policy to continue. In the event a policy lapses after the expiration of the grace period, then a policy holder will have to reinstate their policy open in new window
- You has to make the request and prove financial hardship due to”
- illness/quarantine,
- a lay-off or job loss,
- absence from work due to fulfilling caregiver needs of a child or family member with COVID-19 or
- other financial hardship as a result of COVID-19.
- Health and dental: There are no changes to the grace period for individual health and dental insurance premiums. Policy holders currently have 90 days to reinstate their policy without underwriting. However, policy holders will need to back-pay the missed premiums if they wish to re-start the policy and are not eligible to submit claims until their policies are reinstated. Note that this refers to individual coverage only (i.e. not a group plan sponsored by your employer).
CANADA LIFE
If customers are struggling financially, due to layoffs and job loss as a result of coronavirus, Canada Life will consider an extension of their grace period to 90-days for their insurance premium payment, on a case by case basis.
RBC INSURANCE
RBC Insurance is offering a 90-day grace period for premium deferral until May 31, 2020 for policies issued before March 15, 2020. You can request a deferral of up to 90 days, starting from their first missed premium, if you are unable to meet their premium commitments due to any of the following reasons:
- You have tested positive for COVID-19, are ill and/or in quarantine
- You are in quarantine due to travel outside of Canada
- You have lost their job, even if temporarily, due to layoffs or shut-downs of non-essential business
- You are caregivers for young children and are impacted by daycare and school closures or are caring for a family member with COVID-19
** Please note that clients whose policies were issued on or after March 15, 2020 or who own any UL policies that are not minimum funded or have a loan or are used as collateral for a loan are not eligible for premium deferral.
HOW DO YOU APPLY FOR A PREMIUM DEFERRAL?
Email farjana@levinefinancialgroup.com requesting a 90-day premium deferral due to illness/quarantine, a lay-off or job loss, or absence from work due to fulfilling caregiver needs of a child or family member with COVID-19. Please allow a few days to process this.
Thank you
To all physicians, we want to thank you for your efforts with COVID-19. We appreciate everything you do to keep us all safe and healthy during this trying time. We understand this is an uncertain time for you, your family and your patients; we are here to support you in whatever way we can.
Elliott Levine is the President of Levine Financial Group in Toronto
We Save Physicians Money on their Insurance
416-222-1311 I info@levinefinancialgroup.com