Frequently Asked Questions (FAQs) on Deferment of Premium

Frequently Asked Questions (FAQs) on Deferment of Premium Payment for Life Insurance due to COVID-19

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Question

Answer

What is deferment of premium payment under this

Relief Program due to COVID-19?

This Relief Program is to give the eligible policy owners a deferment period of 3 months to pay the premium for their insurance policy. During

this deferment period, we will continue to provide insurance protection.

This is NOT an automatic premium deferment program. Therefore, policy owners must approach us to apply for this Relief.

Who are eligible for this deferment of premium

payment?

The eligible policy owners are:

• Policy Owners who have been infected by COVID-19

• Policy Owners who are mandatory home quarantined by the authority

• Policy Owners who have suffered a loss of income; and small and medium enterprises (SMEs) which have suffered a loss of income,

as a result of the economic impact of the COVID-19 situation.

Examples of events that lead to such loss of income include retrenchment, shorter working hours and salary reduction for individuals;

and loss of business income for self-employed and SMEs.

Note: The deferment period of 3 months is applicable to Policy Owners who do not have outstanding premiums and the

insurance policy has not lapsed at the time of application.

Policy owners who have been granted the premium deferral benefit earlier and have been timely in repaying deferred premiums, may apply

to defer again for another three (3) months, subject to meeting the eligibility criteria

When is the effective date for this deferment of

premium payment?

This applies to all policies where premium is due now till 30 June 2022. The deferment of premium, if approved by us, will be up to a

maximum of 3 months from the date of premium due.

For Example:

• Payment Deferment Application submitted on 22 April 2022 and policy premium due date is 10 May 2022

• Payment Deferment Application approved on 25 April 2022

• Deferment period ends on 9 Aug 2022

If I am currently using automatic deduction from my

salary, via bank direct debit or credit card standing

instruction, do I need to cancel them?

The automatic deduction will continue as usual. If you wish to temporary cancel them, you are required to contact us.

How do I apply if I am eligible and would like to defer

my premium payment for 3 months?

You may submit your application to [email protected] together with the following documents, starting from

now till 30 June 2022.

Email Subject Title:

Payment Deferment Application: <Your Name> Policy Number <xxxxxxxxxxxxxx>

Supporting Documents:

i. Doctor’s Letter confirming COVID-19 infection (if Policy Owner is infected); or

ii. Letter of home quarantine from authority; or

iii. Other relevant proof of documents, if any (e.g. retrenchment letter, company letter or bank statements to show salary reductions,

hawker center closure notice etc.)

Should you have any enquiry, please feel free to contact our Head Office Customer Service Hotline at 03-7650 1288 between 9am to

6pm from Monday to Friday or email us at [email protected].

Frequently Asked Questions (FAQs) on Deferment of Premium Payment for Life Insurance due to COVID-19

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Question

Answer

How will this benefit me as a Policy Owner?

Policy Owners are eligible for this deferment of premium payment due to COVID-19 through an extension of grace period of 90 days that

maintain the policy intact as per original policy terms and conditions during the deferment period.

• Traditional policy – from premium due date

• Investment Link policy (ILP) – from premium due date

What happens if Life Assured dies or admission to

hospital within the deferment period of 3 months?

In the event of death or admission occurs within the deferment period, the *claim payable will be deducted by the total outstanding premium

including the amount due within the deferment period (plus any other deductible or indebtedness based on the terms and conditions of the

policies). However, if the claim payable is lesser than the total outstanding premium amount, no claim amount will be paid.

*subject to policy terms and conditions

Will there be any interest or charges imposed to my

policy during the 3 months deferment period once my

application is approved?

No, there will not be any interest or charges imposed during the approved deferment period.

However, there may be interest or charges to be imposed from the premium due date after the expiry of the deferment period if the total

outstanding premium is yet to be settled.

Notes: For ILP policy, the insurance charges (including cost of insurance and policy fee) will continue to charge according to the

charge due date if there is sufficient account value (fund value) in the policy.

How long will you take to process my application

We will process your application within 5 working days upon receipt of full documentation.

10.

How do I know whether my application of deferment

is approved by the Company?

We will inform you via email/SMS/letter once your application is approved.

11.

I am self-employed or SMEs. How do I proof my loss

of income?

You can submit your latest 3 months bank statement and your previous bank statements or other supporting documents that can prove your

income before and after COVID-19.

12.

I have already paid my premium due to 30

June

2022. Can I request for refund and apply for the

relief?

No, there will not be any refund if the premium due has already been paid.

Other options refer to Q18

13.

My policy is running on Automatic Premium Loan

(APL) or Premium Holiday, am I eligible?

The deferment period of 3 months is applicable to Policy Owners who has been paying the premium promptly (according to premium due)

in the past but is not able to pay the current premium due as a result of COVID-19. Hence the policy currently running on APL or premium

holiday is not eligible for the Relief Program.

Refer to Q2 for the definition of eligible Policy Owners.

14.

Do I need to resubmit the auto deduction request

(salary deduction, auto debit & credit card standing

instruction) after the 3 months deferment period if I

have temporary cancel it?

No, you do not need to resubmit a new application. We will update for you automatically after the 3 months of deferment period.

Refer to Q15.

Frequently Asked Questions (FAQs) on Deferment of Premium Payment for Life Insurance due to COVID-19

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Question

Answer

15.

After deferment period, will HLA charge my total

outstanding premium due if my policy originally

signed up with direct debit or CCSI?

For CCSI, we will charge your credit card for the total 3 months outstanding premium after the deferment period.

For Direct Debit, you are required to pay us the total 3 months outstanding premium first before we can reactivate your direct debit

arrangement. (Notes: There may be maximum amount allowed for direct debit set by the Policy Owners)

16.

What happens if I am still not able to pay my

premium after the 3 months deferment period?

Your policy will lapse if the policy does not have enough cash value or account value (fund value) to support the premium due or insurance

charge due.

The customers can request for reinstatement without underwriting evidence by paying all the outstanding premiums within 30 days after the

expiry of the 3 months deferment period. Revival amount and interest will be charged and is subject to the policy terms and conditions.

Notes: Deferment of premium payment is NOT waiver of premium. The policy owners are required to pay all the outstanding

premiums due BEFORE the expiry of the deferment or repayment period.

17.

Can I pay partial outstanding premium during or after

the deferment period that approved by HLA?

No, you are required to settle the total outstanding premium due before the expiry of the deferment period except if your Policy is a Traditional

Plan, Investment Link Plan with Non-Unitization Premium Paying rider / Auto Surrender feature and application for premium deferment

received from 1 January 2022 to 30 June 2022. Otherwise, the policy will lapse if the policy cash value or account vale (fund value) is not

sufficient to cover the total premium due or total insurance charges due. The policy original terms and conditions apply.

Applicable for application for premium deferment received from 1 January 2022 until 30 June 2022 (Traditional Plan or Investment

Link Plan with Non-Unitization Premium Paying Rider / Auto Surrender feature)

After the expiry of the deferment period, you would only be required to repay the outstanding 3 months premium over the next 6 months. To

illustrate:

➢ Let’s say deferment started in Mar 2022. Hence, the Mar 2022, Apr 2022 & May 2022 dues will be under deferment.

Premium Due: RM 100.00 per month

➢ The accumulated outstanding of RM 100*3 = RM 300.00 will be divided by 6 over the next 6 months. For this example, it would be

June 2022 onwards.

Instalment amount: RM 50 per month

➢ Existing premium due for that particular Month would also need to be paid as usual.

Hence, Total Premium required for June 2022 to Nov 2022 would be:

RM 100 (usual premium due) + RM 50 (6-month instalment) = RM 150.00

Refer to Q16.

18.

Other than deferment of premium payment, what

other measures HLA is offering to assist the Policy

Owners who are affected by COVID-19?

Other than deferment of premium payment, we will also provide the following options to the Policy Owners who are affected by COVID-19

until 30 June 2022. The request is subject to review and approval by the Company.

• Extend the period during which a Policy Owner can reinstate a policy that has lapsed; (auto revival within 60 days from lapse

date/premium due date, allow revival with full underwriting for policy lapsed up to three years)

• Provide options to enable Policy Owners to continue to meet their premium payments and maintain their policies. This may include

o adjustments to the premium structure (payment frequency/mode and/or target premium amount)

o changes in the sum assured and/or coverage

o conversion into a paid-up or extension term insurance (ETI) policy.

(Notes: after paid-up or ETI, all the attached riders will be terminated)

Frequently Asked Questions (FAQs) on Deferment of Premium Payment for Life Insurance due to COVID-19

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