NY grace period life insurance annuity payments
Update: NY has extended the grace period an additional 30 days beginning June 6th.
Re: Extended grace periods for life insurance policy or annuity contract payments
To keep you informed during the COVID-19 pandemic, we want to make you're aware of changes to grace periods for your life insurance policy or annuity contract payments.
What is happening
The New York Department of Financial Services recently issued regulations that may extend the grace period for the payment of annuity and insurance premiums for up to 90 days if you can demonstrate financial hardship as a result of the COVID-19 pandemic.
How to demonstrate financial hardship
If you are unable to make a timely premium payment due to financial hardship as a result of the COVID-19 pandemic:
- You need to submit to your insurer or premium finance agency a statement that you are experiencing financial hardship as a result of the COVID-19 pandemic.
- The insurer will accept the statement as satisfactory proof of financial hardship.
Extended grace period
If you can demonstrate financial hardship as a result of the COVID-19 pandemic (see above), your insurer must extend to 90 days the applicable grace period for the payment of premiums and fees under your life insurance policy or annuity contract. To qualify for the extended grace period:
- Contact your insurance company for details about current grace periods.
- If you do not make a timely premium payment and can demonstrate financial hardship as a result of the pandemic, your insurer may not impose any late fees relating to the premium payment or report you to a credit reporting or debt collection agency regarding the premium payment.
Overdue insurance payments
If you did not make a timely premium payment during the 90-day extended grace period and you can still demonstrate financial hardship related to the COVID-19 pandemic, regulations require your insurer to permit you to pay the overdue premiums over a 12-month period. This also applies if the insurer sent you a non-payment cancellation notice prior to March 29, 2020.
Depending on the type of life insurance policy or annuity contract you have, the grace period may not apply to your situation. If you have questions about this letter, please contact your Edward Jones financial advisor. Thank you for the opportunity to serve you.