How To Get Quicker Premium Payments?

[theleadingagent]

So I'm just realizing that apps ask the prospective client when they'd like to draft/pay their first premium (for the non annual folks).

Why are my prospective clients choosing 2, 3, 4 weeks out? I get they are probably choosing dates around the times they get paid like 1st and 15th

Maybe this prospective client gets paid once a month, IDK, but I have a post dated check for almost 3 weeks out and I am just noticing on their agent website that GPM doesn't accept post-dated checks, they cash them upon receipt.

I'm not sure what to do with this check now.

How do you get them to select earlier draft dates?

 

[goillini52]

Why are my prospective clients choosing 2, 3, 4 weeks out?

Because you let them? They're just procrastinating some more.

Try not giving them a choice. Tell them the 1st premium will be drafted within a couple of days, then on the 13th of each month after.

I realize that sometimes they have a legitimate reason why they might need to put it off, but try what I suggested and see if it doesn't help.

 

[Life Hawk]

So I'm just realizing that apps ask the prospective client when they'd like to draft/pay their first premium (for the non annual folks).

Why are my prospective clients choosing 2, 3, 4 weeks out? I get they are probably choosing dates around the times they get paid like 1st and 15th

Maybe this prospective client gets paid once a month, IDK, but I have a post dated check for almost 3 weeks out and I am just noticing on their agent website that GPM doesn't accept post-dated checks, they cash them upon receipt.

I'm not sure what to do with this check now.

How do you get them to select earlier draft dates?

Or, if you are confident in your business, use a company that pays upon approval, not upon draft date.

 

[billyb]

I never collect a check. Get a void check and let the company draft the initial premium.

 

[theleadingagent]

I never collect a check. Get a void check and let the company draft the initial premium.

I suggest the bank draft to help so that there was no remembering/forgetting. Prospective client still didn’t want to do it and saw the options for quarterly/biannual/annual check payment then chose the quarterly.

So if I do collect a check it should be only annual right? Because it’s more important to have the policy stick for at least a year right?

 

[goillini52]

ISo if I do collect a check it should be only annual right? Because it’s more important to have the policy stick for at least a year right?

It's important to have the policy stick for at least as many months as your commissions are advanced.

 

[theleadingagent]

I never collect a check. Get a void check and let the company draft the initial premium.

Can you clarify why you never collect checks?

 

[goillini52]

Can you clarify why you never collect checks?

Because 99.99% of the people pay by bank draft...including the 1st draft.

 

[theleadingagent]

Because 99.99% of the people pay by bank draft...including the 1st draft.

I didn’t realize it was that rare for people to pay upfront with checks? I thought he meant if a client offered the annual amount by check he’d turn it down or something

Foresters allows check payment for first premium and annual premiums.

GPM allows check payment for annual, semi annual, and quarterly.

The only thing I could see benefiting both the agent (well the agents who take advanced commissions) and the client is check payments for annual premium

Now I see though. If this prospective client is not responsible, it can be a hassle to get them to send the checks in.

 

[goillini52]

I didn’t realize it was that rare for people to pay upfront with checks? I thought he meant if a client offered the annual amount by check he’d turn it down or something

Foresters allows check payment for first premium and annual premiums.

GPM allows check payment for annual, semi annual, and quarterly.

The only thing I could see benefiting both the agent (well the agents who take advanced commissions) and the client is check payments for annual premium

Now I see though. If this prospective client is not responsible, it can be a hassle to get them to send the checks in.

All companies will accept annual, semi-annual and quarterly direct bill payments. A few will take monthly. Your persistency will be much better on bank drafts.