Among the innovations introduced by the international insurance company is the option of suspending premium payments while keeping the insurance coverage in place, to cope with unforeseen changes.

Medium- and long-term planning of one’s asset management is crucial in deciding whether and how to invest and how to integrate investment and insurance protection. On the other hand, however, uncertainties are unavoidable, because life can involve unpredictable events or certain situations that simply change, disrupting plans and changing priorities.

To support customers throughout their life cycle, international insurance company NOVIS has always introduced innovations to make insurance solutions flexible so that they can evolve in parallel with people’s needs.

Innovations in Insurance: suspended premium, warranty unaffected

NOVIS’s approach has always been characterised by the desire to act as a single point of contact for customers, both for insurance protection and for the option of investing in widely diversified internal funds capable of seizing emerging opportunities.

This has led to the development of solutions with a medium- to long-term timeframe, which allows investment risks to be mitigated and provides broad-based protection.

On the other hand, life situations can change over the years, altering the initial conditions under which the choice to build one’s investment portfolio was made.

One of the most common situations is the variability of people’s employment status, especially in the face of contemporary  labour market dynamics. These are characterised by profound changes triggered by COVID and demographic dynamics. Compared to the past, when career paths were stable and predictable, today the world of work is distinguished by flexibility, which implies opportunities for change to pursue brighter careers, but also relatively long periods of lay-offs.

The fear of not being able to meet the commitment of an investment on a consistent basis may discourage one from starting the investment, leading to missed opportunities in terms of asset protection and growth. Therefore, NOVIS has designed a solution to respond to a widespread fear that may lead to irrational choices, by introducing premium suspension into its products.

This is a mechanism whereby the policyholder who has chosen a recurring premium plan may request to suspend the payment of the scheduled premium, starting as early as the first month of the contract^[1]. This choice, which may be dictated, for example, by a sudden change in one's employment situation, does not cause the validity of the contract to lapse, so the insurance covers remain in place for the accumulated capital share.
If, for example, the policyholder dies during the suspension period, the company will pay the beneficiaries the sum insured, equal to the value of the contract at the time of death, and the sum insured in the event of death.

At any time, the policyholder may resume premium payments, choose to supplement them with additional premiums or exercise the surrender option.

Flexibility for every need

The option of suspending the premium, provided for in most NOVIS solutions, is an option that introduces flexibility into insurance products, making investing more accessible to anyone who wants to build up assets over time, realise their plans and protect their loved ones.

Thus NOVIS confirms its willingness to stand by people as a single point of contact for both insurance and finance.

Depending on one’s profile, one can choose the most suitable NOVIS solution to meet capital preservation or growth needs or to invest sustainably, through internal funds that apply maximum geographical, sectoral, and currency diversification.

In addition to investment opportunities, an option such as premium suspension allows one to adapt one’s portfolio to changing life situations, reconciling the need for security with the possibility of seizing opportunities in the financial markets.

^[1] Technically, the recurring premium instalment due shall be deducted from the Initial Single Premium and, likewise, for the subsequent recurring premium instalments, until the policyholder pays the recurring premium instalments under the Recurring Premium Plan.