Down Payments

[BA-35]

Hi gang, if I may, I'd like to ask the community a question:

For policyholders electing a monthly installment plan, my company requires a third of the total premium as a down payment. This is true whether or not the policyholder elects an EFT option.

I thought this seemed high; however, I have no idea what other carriers require.

Anybody willing to share?

Thanks

 

[nyc2phi]

I've always asked for a down payment equal to the percentage of the rest of the payments.

Example if they are on a quarterly pay plan the deposit should be 25%

 

[CaptiveGuy]

99% of my homes are mortgagee billed but the ones that are direct bill monthly require a 1/9 or 1/10 down payment. Requiring 33% down does weed out the deadbeats though.

 

[JCK818]

some carriers are like that. That is what happens when you are with a captive agency. They cannot shop the policy.