Have a couple that I replaced their policies with companies that I write with and they wanted their premiums drafted on the 10th of August. So I've already gotten signed forms from them that I am going to fax to their current insurance company. My question is, should I list the effective date to cancel the policies on the 10th when the other policies are set to draft for the first time? I'm just wondering when these new policies that have already been approved will be in effect.
Canceling Replaced Insurance Policies
- Thread starter Speck
- Start date
Most companies will make the draft date the effective date if you look carefully on the application. Who is your upline? You could also have them call into the incumbent carrier and be removed from bank draft. That way you are not cancelling their coverage until the new policy goes active. As always, fill out and send in the replacement forms
- 2,960
Stop the bank draft and let the old policies lapse. That way there is an overlap in coverage from both companies and if something goes wrong with the new policies, they can just pick the payments back up on the old ones. As they'll have a 30 day grace period.
Let them know they'll get a direct bill from their old company. Then they can just ignore the bill and it will lapse on its own. By that time the new policies should be effective.
Let them know they'll get a direct bill from their old company. Then they can just ignore the bill and it will lapse on its own. By that time the new policies should be effective.
- Thread starter
- #4
I'm thinking they've got a little cash value and the company many times requires that you request that in writing. Sometimes it goes directly over to funding the automatic premium loan provision of the policy.
If the previous policies have cash values,(which you should have verified before), then you need to surrender the old policies after the new ones take effect.
Have the client call and ask for surrender forms after stopping bank draft but have them send them in after the new policy is active and first premium is drafted. This way they are covered with the new policy and they can proceed to have the cash value sent to them less any surrender fees.
- 322
it is what it is but I think lots of banks actually charge $25-30 to put a stop on a draft
Nope that is really not what we are talking about. If a current draft that has already processed then maybe, but having a carrier remove the client from a monthly eft will not burden the carrier or the client with bank fees. Two different issues.
- 5,243
I just got a text from JG talking about people on the forum...now I understand his text.
