October 1, 2024
Initial Life Premium Payments Explained
Steps from the most efficient and straight forward to the most manual.
A smooth payment process is one of the most important steps for a great customer experience for both you and the policyholder. Below are different client profiles and tips on how to achieve getting coverage in force and commissions paid. Options are in order of most efficient and straight through to most manual.
Client wants coverage in force immediately and has no preference for when ongoing premium payments happen.
- Select Draft Next available
- Once the policy is issued, premiums will be deducted the following business day.
- Commissions will be paid in the commission cycle that the initial payment is applied.
Client wants coverage in force but needs initial and ongoing premiums to be on a specific date.
- Select draft at a specific date (choose a day 1-31)
- Conditional coverage will be in force until the draft date.
- Commissions will be paid in the commission cycle that the initial payment is applied. This could delay commission payment as the initial premium payment is being scheduled for a specific date in the future.
Client wants coverage in force immediately but also needs ongoing premium payments to be on a specific date.
- Select Draft Next Available/Specific Date for Recurring Drafts
- Once policy is issued, initial premium will be deducted the following business day. Ongoing premiums will be deducted on the chosen date in the future.
- Commissions will be paid in the commission cycle that the policy payment is applies.
Client is in close communication with Agent or plans to make changes during the application process. Initial premium is not drafted until the Agent approves the date.
- Select Delayed Bank Draft/Specific Date for Recurring Drafts
- This option does not allow for conditional coverage. Policy coverage will not start until initial premium is applied.
- Initial premium payment is drafted with the Agents requests and ongoing premium payments will be drafted at the date selected.
- Commissions will be paid in the commission cycle that the initial payment is applied.
