Singapore life insurers to assist policyholders as deferment period closes

Those currently under the scheme will remain until their applicable end date.

Singapore’s life insurers will continue to assist policyholders with financial difficulties as the Deferred Premium Payment (DPP) scheme closes for application on 31 March, according to the country’s Life Insurance Association.

Policyholders currently on the DPP will continue to be on the scheme until their applicable end date. If they continue to face financial difficulties and remain unable to pay the deferred premiums in full at the end of the deferment period, they may approach their insurers for assistance, which may include options such as extension of the DPP by three months or a three-month instalment payment plan.

Other policyholders facing financial difficulties in paying premiums due to COVID-19 are also encouraged to approach their insurers to explore other options.

Life insurers and financial advisory representatives will continue to closely engage relevant customers to review their policies and consider policy options that can be exercised to adjust insurance coverage and premiums to sustainable levels for the long-term.

Around 41,000 applications were received in 2020 since the launch of the scheme, accounting for approximately 0.3% of total in-force policies as of 31 March 2020. However, take-up rates for the DPP scheme have notably declined since its launch; 29,000 applications were received in Q2 2020, and applications fell to approximately 6,000 applications in Q4.

DPP applications have continued to fall through the first two months of 2021.