AXA Life has launched an unemployment 'benefit' programme to help people who are retrenched maintain their insurance - or collect a refund on it.

Anyone taking out a regular premium policy between March 2 and May 31 gets a choice of a 100 per cent premium refund or an extended grace period of up to 365 days should they lose their job.

Typically, a policyholder has up to 30 days to pay the premium to maintain a policy, after which it may lapse. Under AXA's offer, no interest will be charged during the grace period and there is no need to show evidence of insurability upon reinstatement.

AXA Life chief executive Gilbert Pak said the move demonstrates AXA's confidence in the future and commitment to clients. 'With this (programme), clients need not worry about sustaining their financial commitments if they are involuntarily unemployed,' he said.

The offer does not apply to hospital and surgical plans or to recurring single-premium plans.

It is available to those affected by retrenchment or redundancy but will not apply to those who quit their job voluntarily or are terminated as a disciplinary measure.

Life Insurance Association officials have said surrender and forteiture rates here remain low so far, and few people have requested help to maintain policies.

This article was first published in The Business Times.