While in recent weeks we have covered numerous issues on how the insurance industry has been extremely flexible during the ongoing Coronavirus outbreak with the vast majority of providers upholding policies already in place. Further to this, we’ve also discussed how the industry has continued to offer protection products while a number of providers have also brought to market new policies to deal with the ever-changing market demands. There has now in recent days been further regulatory guidelines set down by the FCA (Financial Conduct Authority) to ensure protection clients will now receive even more help from their providers during these unprecedented times.
Simply Cover regularly has dealt with numerous clients who have needed reassurance over the security of their policy which is a service we have always been happy to provide to our clients. Naturally, we welcome this transparency and love working with our clients to ease any concerns they have with their existing policies and to reassure them that the cover they bought with us will cover them in any unforeseen related illnesses to the ongoing pandemic. Another issue that we have been working with our providers and clients on is when circumstance has required it is the arranging of any required payment holidays on policies due to the unprecedented situation many household incomes are currently going through.
Under normal circumstances, it’s true that any breaks in policy can have profound effects on the client’s future payout eligibility however we have in numerous situations in the past and more so in the present been able to speak with providers on behalf of our clients if consequences out of the ordinary occur.
While this has been a role we have only been more than happy to fulfill the good news now for existing policyholders is that the FCA as of the 18th of May has outlined to insurers not just life protection but all insurers that they now need to work with policyholders who are struggling to make payments due to the effects on the economy of the Coronavirus to provide payment assistance.
What this means for policyholders who are currently going through a period of financial duress is that they should now be able to defer payments temporarily in the form of payment holiday. Further to this is the good news that while the consumer is going through an agreed payment holiday that their policy will remain active. Whether this is for life cover, car, home, mortgage, income protection, sickness cover, and also private medical insurance.
In order to have such a payment holiday agreed with your provider, there will be a time cap in which you will need to act. You will need to contact your provider and request a payment holiday no later than the 18th of August alternatively Simply Cover clients can speak to us directly in order to find out more about how we can help with this process. As an additional note, the regulator has stressed that this is a move to ensure that consumers can remain fully protected while being provided with additional due care and value from their provider during these unprecedented times.
The good news for any client be it with Simply Cover or an additional intermediary or provider is that should you be going through any financial difficulty that you are eligible to request a payment holiday to help with your situation. Further to this as disclosed above the regulator has stated that during this payment holiday your policy will remain in place with full eligibility to claim if any circumstance relating to your policy protection arises.
For any further information relating to payment holidays of a policy you have with Simply Cover or to discuss any other protection concerns or policy needs then please don’t hesitate to contact Simply Cover.
Click the Source here to find out more about the FCA Guidelines (published: 14/05/2020)