Options for Life Initial Premiums Explained

Available Options

EFT Draft Next Available

Initial premium drafts the next business day. This is straight through processing and the most efficient way to move a policy to inforce status and have commissions paid. Conditional coverage is in force.

EFT Draft on a Specified Date

Choose a specific date of the month (1-31) for the premium to draft.

If the policy is issued before the selected date, then premium drafts on the selected date. Conditional coverage is in force.

Example App submitted – July 2

Specified date – 10^th of the month

Policy Issued – July 8^th (2 days before the specified draft date of 10^th)

Premium draft – July 10^th and policy is in force. Commissions pay in the July 10^th commission cycle.

**If the policy is issued after the selected date, then policy and payment will be future dated to the next month’s specified date. Conditional coverage is not available.

Example App submitted – July 8

Specified date – 10^th of the month

Policy Issued – July 14^th (missed the specified draft date of 10^th)

Premium draft – August 10^th and policy is in force. Commissions pay in the August 10^th commission cycle.

Delayed Bank Draft

Agent is notified when the policy issues. Agent must communicate back to NLG to request the initial premium draft. Conditional coverage is not available with this payment option. Commission will be paid in the commission cycle the initial premium is drafted. This option can be useful if you anticipate there will be changes made during the new business process and you are highly involved in this process.