I am a newbie recently licensed selling FE only. I know the prefered way is upfront. Another new agent said all of his first few clients didn't have the funds & would have to wait until their next check came in. So my question is what is reality?? What % pay 1st premium at time of writing the application versus the agent having to collect it out in the future??? Thanks!
When Does 1st Premium Become Due?
- Thread starter GeneTexas
- Start date
Welcome to the forum Gene.
Most companies will do a bank draft for the 1st months premium. When you send the app in they usually will draft within a couple of days unless you specify for them to do differently. To say it another way, unless you give them a specific date to draft the 1st months premium, they will usually draft it before the policy is even approved.
Most people have the money in the bank to cover the 1st draft. I would say that at least 90% do.
Most companies will do a bank draft for the 1st months premium. When you send the app in they usually will draft within a couple of days unless you specify for them to do differently. To say it another way, unless you give them a specific date to draft the 1st months premium, they will usually draft it before the policy is even approved.
Most people have the money in the bank to cover the 1st draft. I would say that at least 90% do.
