Paying for your policy
Automatic Premium Loan (APL) / Non-Forfeiture Loan (NFL)
When a premium is not paid up by the end of the allowable grace period, an Automatic Premium Loan (APL) will be applied to pay the overdue premium if the Policy has acquired sufficient Cash Value.
An APL payment means you are taking a loan against the Policy's Cash Value. This loan allows the Policy to stay inforce, ensuring your coverage and benefits continue. The APL is charged at an interest rate of 6.5%, compounded at the Policy's anniversary.
As long as the premiums remain unpaid, Automatic Premium Loan will continue to apply for overdue premiums. In order to retain both your policy coverage and its accumulated Cash Value, you should redeem your APL (and any accumulated interest) as soon as possible. If the Policy Cash Value is ever exhausted your Policy will lapse and no longer be inforce.
To redeem your APL:
- Contact us for an APL loan redemption quotation
- Issue payment to Aviva Ltd
Reviving A Lapsed Policy
It is important that you remember to make your premium payments on time. If the premium is not paid up by the stated grace period, your Policy will lapse unless your Policy has acquired sufficient Cash Value for an Automatic Premium Loan. A letter will be sent to notify you that the Policy has lapsed.
To return the Policy to inforce status (known as Reinstatement of the Policy):
- Declare your health status again by completing one of the following forms:
- Pay the outstanding premiums together with the interest charged on the outstanding premiums (if applicable) and indebtedness (if any)
- If your health status has deteriorated, you may need to pay a higher premium after the underwriter's review
One hassle-free way is to pay your premium through Interbank Giro. You can safely know that your installments will be automatically deducted from your bank account when the premium is due. To get started, print a copy of the
Riders represent additional benefits that can be added or attached to your existing Policy to enhance the coverage, with the payment of additional premiums. Riders offer flexibility of choice to suit the different needs of individuals. Use these option benefits to customise coverage to meet your specific needs.
Which riders can be added to your basic Policy plan varies according to the existing plan type and its term. Hence, your plan type and term determine which riders that can be added.
Riders can only be attached to a plan on its Policy anniversary. The rider premium is based on:
- The type, sum assured, and term of rider being added
- Your occupation and age at next birthday, based on the Policy anniversary date, on which the new coverage commences
- All riders must be assessed and approved by our underwriters
Contact us for assistance learning which type of riders can be added for your policy and to receive a rider quotation. This should be done at least 1 month before the policy anniversary.
Assigning a Policy
The transfer of all rights under an insurance Policy from one party (the assignor) to another (the assignee) is called assignment. You are required to notify us of these changes, although Aviva is not responsible for determining the validity of an assignment.
The most common types of assignment are:
- Absolute Assignment (Deed of Assignment), where all rights under the Policy are transferred from the assignor to the assignee without any conditions
- Collateral Assignment, where all rights under the Policy are transferred to the assignee, usually a bank, as collateral or security for a loan granted to the assignor
You can make an Absolute Assignment by:
- Arranging for both the assignor and assignee to visit us personally, with their NRICs, at our Customer Service Centre
- All parties must be over 18 years of age, of sound mind, and cannot be an undischarged bankrupt
You can make a Collateral Assignment by:
- Contacting us, or contacting the bank or organisation that will become the assignor of the policy for security or collateral
- Some banks and other institutions have their own collateral assignment procedures
Converting to Paid-Up Policy
Once the Policy has acquired Cash Value, you can choose to stop payment of future premiums by converting the Policy to paid-up status. Conversion to reduced paid-up assurance means that you can continue to remain insured for the same policy term but at a reduced sum assured amount.
Contact us for assistance if you wish to determine your Policy's paid up value.
Updating Personal Contact Information
To help us serve you better, please notify us of any changes in your contact information, including your address, email address, and phone numbers. This ensures that we can always reach you in a timely manner.
You can log on to MyAviva to update your address, phone number and email address.
Your policy acquires Cash Value over time. You can receive a loan for up to a maximum 90%* of your Policy Cash Value, minus any indebtedness. You will be charged an interest rate of 6.5% on the loan, compounded at policy anniversary. The Policy Loan and its interest can be paid by installment.
Contact us to apply for a Policy Loan.
* Please refer to your Policy Contract provision for the maximum percentage of Your Cash Value that you may apply for Policy loan.
When a Policy Matures
A maturity amount is payable once your Endowment Policy reaches maturity. We will notify you as your Policy maturity date approaches. After this date, the Policy is considered to have matured and is no longer in force.
Surrendering a Policy
A Policy that has acquired Cash Value can be surrendered in exchange for its Cash Surrender Value upon cancellation of the Policy. You should consider carefully the cancellation and surrender of your policy, especially the loss of protection for you and your family.
Replacing your coverage, immediately or at a later date, will require a higher premium due to the older entry age. A new Policy's Cash Value will also build very slowly over the years. To continue to enjoy your insurance coverage, you may wish to take a Policy Loan instead.