Why Can't We Have Something Like Federal Allotment Program Everywhere?

Norwayguy

I have spent way too much time here.
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Norway, ME
So anyone who has ever worked the Federal market knows about the Federal Allotment system. So all the allotment system is is direct deposit where the insurance companies have setup a system with certain banks and tpas. Part of the sale has the premium go via direct del to a bank account the bank account is premade with the same 6 numbers or so of the account the same and the last digits are the clients social security number and you fill out an extra form informing the bank where to send the money.

Plus is now your premium is payroll deducted so no nsf and the client doesn't have to worry about the draft overdrawing the checking account. Also the positive is it makes it more difficult to stop the premium.

Con the carrier would need to be willing to accept this. I have worked the 403b market and clients love payroll deduction but getting an employer to add multiple payroll slots can be difficult though most will allow a employee to have a second direct dep.

I am just surprised we can't create a system like this for the private sector. All we would need would be a TPA or bank able to do this type of setup and have them setup with the carriers so we can submit business this way...Personally I would be willing to see the customer pay a small fee per month for the direct deposit option for the convenience.
 
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