Deferred payment plan – frequently asked questions

Support with Employee Life Cover and Employee Accident Cover

We offer a deferred payment plan to employers with Employee Life Cover (ELC) and Employee Accident Cover (EAC). Read our frequently asked questions below for more information about our deferred payment plan.

Frequently asked questions

What is a deferred payment plan?

A deferred payment plan enables you to delay your payments for a set period of time – in this case, it’s 3 months. Your payments will still be owed at the end of this period.

Can I set up a deferred payment plan if I’m already behind with my payments for Employee Life Cover/Employee Accident Cover?

If you’re already behind with your payments, we’d need you to pay in full any outstanding balance. You can do this by calling us on 0333 230 1311. Then, once you’ve done this, we can discuss next steps with you.

If you don’t pay the outstanding amount on your account, you’ll be contacted by our ELC/EAC team and we may need to close your ELC/EAC account.

Can I pay my outstanding balance in full and continue paying my payment schedules as normal?

Yes, if you’re able to pay your outstanding balance in full please contact us to arrange a one-off BACS payment. When we’ve received payment, we’ll write to you to confirm this and we’ll continue to collect payment each month as normal.

Can I pay my outstanding balance in full and choose to defer payments later?

If you’re able to pay your outstanding balance in full but would like to defer your payments in the future, please contact us to arrange a one-off BACS payment. If you decide you’d like to defer your payments at a later date, please get in touch with us, we can then discuss your options for the deferred payment plan. We normally need you to confirm in writing that you’d like to choose the deferred payment plan.

Can an employee still make a claim during a period of non-payment?

If any employees were to make a qualifying claim during a period of non-payment, we’d be unable to pay the benefits until we’ve received payment for the period the accident or death occurred. This is explained in the EAC policy conditions and ELC rules.

How do I make a payment so that a qualifying claim can be paid?

To make a payment, please call us on 0333 230 1311 and we’ll set up a one-off BACS payment.

How long is the deferred payment plan?

This deferred payment plan will last for 3 months. Once we’ve received confirmation from you in writing that you’d like us to set up the deferred payment plan, we’ll write to you within 7 working days to confirm the start and end dates.

When will the deferred payment period start?

If you confirm with us in writing that you’d like to go ahead with the deferred payment plan by the 21^st of a month, we’ll be able to defer your next payment.

If we receive your confirmation after the 21^st of a month, we’ll collect your next payment as normal that month and the deferred payment period will start the following month.

Once we’ve received your confirmation, we’ll write to you within 7 working days to confirm the start and end date of the deferred payment plan.

Do I need to continue to manage and submit my payment schedules during the deferred payment period?

Yes, please continue to manage and submit your payment schedules as normal.

Do I need to cancel my Direct Debit payments for the deferred payment period?

No, please leave it to us to suspend your Direct Debit payments for the deferred payment period.

I have a joint account for my workplace pension with The People’s Pension and my Employee Life Cover (ELC)/Employee Accident Cover (EAC). Do I need to do anything?

We’ll need to separate your account with The People’s Pension from your ELC/EAC account and set up an ELC/EAC only account for you. We’ll make sure there’s no break in your employees’ ELC/EAC cover. We’ll simply need you to complete a Direct Debit form or ask for a copy by emailing us at EAC.ELC@bandce.co.uk or calling us on 0333 230 1311.

Can employees still make a claim during the deferred period?

Yes, but we’ll only be able to pay qualifying claims once we’ve received payment for the period during which the accident or death occurred.

This is explained in the EAC policy conditions and ELC rules.

What will happen if a qualifying claim is made during the deferred period?

We’ll write to the claimant to explain that we can’t currently process the claim. We’ll ask them to contact you for more information and suggest they ask you to contact us.

We’ll write to you to explain that a qualifying claim has been made, by who and also who that claim relates to. We’ll also explain that to pay the qualifying claim, we’ll need you to make payment for the period during which the accident or death occurred. We’ll ask you to get in touch with us so that we can set up a one-off BACS payment for you.

Will my employees know that I’ve deferred my payments?

We won’t tell your employees that you’ve deferred your payments.

But, if you tell your employees in advance that you are deferring your payments, it may help reduce any potential confusion for them and extra administration for you.

Will the deferred payment plan affect my employees’ terms of employment?

Providing ELC and EAC can form part of an employee’s employment contract. If you pay your outstanding balance in full at the end of the deferred payment period, your cover won’t be affected, and neither should your employees’ contractual terms.

What happens if, once the deferred payment plan has started, I no longer want to defer my payments for the full 3 months?

We’ll collect any deferred payments on your next normal payment date, along with payment for the most recent payment schedule. We’ll need 10 working days’ notice in writing before your normal payment date to reinstate standard payments for that month.

Can I defer my payments for longer than 3 months?

No, we’re sorry but this deferred payment plan is for 3 months only.

Can I make partial payments each month during the deferred period?

No, we’re sorry but you can’t make partial payments during or after the deferred period.

What will happen when the deferred payment period ends?

We’ll re-activate your Direct Debit payments. We’ll collect one Direct Debit for the most recent schedule and we’ll add your 3 deferred payments together and collect them as a separate Direct Debit on that same date.

When the deferred period ends, we’ll go back to collecting one Direct Debit payment as normal.

What if I would like to choose the deferred payment plan but I don’t pay by Direct Debit?

If you’d like to go ahead with the deferred payment plan, we’d need you to start paying for ELC/EAC by Direct Debit.

Simply complete a Direct Debit form or ask for a copy by emailing us at EAC.ELC@bandce.co.uk or calling us on 0333 230 1311.

What happens if I’m still struggling financially at the end of the deferred period?

If you’re still struggling financially and can’t pay your standard monthly Direct Debits and/or the payments you missed during your deferred payment plan, then please get in touch with us as soon as possible.

Visit the MoneyHelper’s Money Navigator Tool for an action plan based on your own situation.

How many times can I defer my payments?

We’ll discuss your options with you and consider individual circumstances.

I also have a workplace pension with The People’s Pension, can I defer my workplace pension contributions too?

No, as an employer, you’re required to contribute to your employees’ pension pots on a regular basis – from the date your auto-enrolment duties start. Visit The People’s Pension website for more information about employer pension contributions.

Can I pause my Employee Accident Cover (EAC)/Employee Life Cover (ELC) and restart it later?

No, we’re sorry, but ELC/EAC must be continuous in accordance with the terms and conditions. For more information, please read the EAC policy conditions and ELC rules.