- 11,280
Renewals start in the 13th month from the effective date with every company.
MedSupp commission when enrolling early
- Thread starter J2727
- Start date
- Thread starter
- #12
Most pay upon issue when the 1st draft is made. If you have them draft the 1st premium immediately, you'll get paid early.
Can the client choose to wait until the effective date (or the month before) to make the first draft even if the application was several months before?
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- #13
- 29,487
Yes, but why wait?
- 29,487
"New" or leave blank and the company will contact the policyholder later to get their #, or you can let them know when they get the #.
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- #16
Yes, but why wait?
Ok, let me clarify...
Would it be just the first draft being made at the time of the app (several months before) and then waiting until the 2nd month (or first month to pay the 2nd month) after their effective date for the rest of the billing to continue? So, there would be several months without drafts in between.
- 29,487
Say you write somebody now for a 12/01/2019 effective date, they'll draft December's premium now, then begin drafting monthly in January(their 2nd premium).
- Thread starter
- #18
Ok great, makes sense. Thanks.
This is carrier specific. Some are what I call, “Buy now, pay later” where the initial draft can be on the effective date. Others take draft w/ the app - then subsequent drafts start a month after effective.
Yes, but why wait?
My thoughts exactly. I'm all about keeping debt low but with the chance of charge backs so incredibly low for Med supps, i'm all for taking the money up front in advances and have been for 10 years. Money in my hot little business hands today is far better than spread out over 12 months. But, none of the carriers I work with charge me interest either.
I'd recommend telling them how it's going to go in all cases of selling a Med supp or filling out the app. We're just in the habit of telling everyone "This company does a bank draft as soon as the policy is issued", that's the way it is unless they say the won't have the money until later that month then we'll shift accordingly. Control the call and lead your prospects in the conversations and tell them how it goes. The less options you give the less confusion, you get paid faster, and they'll perceive you as an authority.
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