Term Life Insurance Payment Process
UPDATED: Mar 6, 2020
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You’re approved! The hard part is behind you now and the finish line is in sight.
The life insurance company will now “issue” your new policy. That may sound overly formal, but all it really means is they will print it, put it together in a nice folder and mail it to our office.
We’ll then process the policy to see what’s needed from you to put the coverage in place. These items are called “delivery requirements.” Once we have this list together, we’ll send it to you along with the policy and a return envelope.
It’s important to return these items to us by the date noted on the list. Coverage will not start until we receive everything from you. Also, approvals do expire. So if you wait too long, you may have to start all over!
You may see one or more of these common delivery requirements when you get your policy in the mail:
- The first payment or premium. This is usually payable by check, electronic draft, or credit card.
- EFT and voided check. This is needed if you are paying monthly.
- Delivery receipt. This is a form that states you received your policy.
- Amendment. This is included when something has changed since your application. It’s often used to update information.
- Good health statement. If your application has been in underwriting for longer than normal, you may need to sign this stating your health hasn’t changed since you applied.
Paying for Your Policy
Payment is almost always one of the delivery requirements needed to put your policy in force. It’s important to get this to us right away. Even if you send everything else in, coverage won’t start until we receive your payment.
If you are paying annually, semi-annually, or quarterly, you can pay your premium by check or electronic draft from a checking or savings account. Most companies even allow you to pay your first premium by credit card. If you are paying monthly, an electronic draft is required by all life insurance companies.
It’s time for some peace of mind.
We’ll check your delivery requirements then forward them to the life insurance company. We’ll then let you know when they’ve received them, and your coverage is in place. The effective date of your coverage, or “policy date” will be listed in the policy. Some companies will even advance the policy date to the day they received your payment.
That’s it! You’re all set. Feel free to blow this popsicle stand.
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