In the event that an employer wants to temporarily reduce the salaries (and subsequent policy benefit) in line with the employee’s actual salaries e.g. by 20% if they have been furloughed, we can provide clients with revised accounts. In the event this is requested, we will agree to keep the unit rate unchanged and issue a revised quotation on the lower sum assured.
Where a policy has paid its premium annually, the revised accounts may mean some premium will be refunded as a result of the reduction in salary. After furlough has ended, if there is a material change to the risk of the policy (e.g. a 30% change in workforce), our normal practice of conducting a rate review of the policy will still apply.