EFT Premium Examples During the application process for ManhattanLife individuals can specify a preferred Effective Date and Premium Draft Date (if Electronic Funds Transfer is elected). Depending on what is chosen, it may have an impact on the timing of EFT withdrawal and policy status codes on the ManhattanLife Agent Resource Center (ARC). We highly recommend choosing a later Effective Date to grant the Underwriting Department time to process the application(s). Please review the Premium Examples below: Example 1: An application is taken on Saturday afternoon, April 1, 2023. The applicant chooses Monthly EFT payments but did not specify an Effective Date. In this example ManhattanLife will use the Policy Release/Approval date as the Effective Date. The first monthly premium draft will be drafted once the application has been approved or on the selected draft date if a future date. Example 2: An application is taken on Saturday afternoon, April 1, 2023, requesting Monthly EFT payments be withdrawn on the 20th of each month. No Effective Date was specified. In this example, the policy’s Effective Date will be the Policy Release/Approval date. The policy will appear in ARC with the status noted as “Active, Approved Pending Premium.” The first monthly premium draft will be drafted on Thursday, April 20. Example 3: An application is taken on Saturday, April 1st requesting an Effective Date of April 15th. Monthly EFT payments are requested, with the premium withdrawal date of the 15th of each month. In this example, the policy’s Effective Date is Saturday, April 15. The first monthly premium draft will be drafted on Saturday, April 15. Example 4: An application is taken on Saturday, April 1st requesting an Effective Date of April 15th. Monthly EFT payments are requested, with the premium withdrawal date of the 25th of each month. In this example, the policy’s Effective Date is Saturday, April 15. The policy will appear in ARC with the status noted as “Active, Approved Pending Premium.” The first monthly premium draft will be drafted on Tuesday, April 25. Impact on Claims: Between the Effective Date and the first premium draft, if the insured had some health event that would trigger a claim - the claim would be covered in each of the above 4 examples. Example 4 would differ only in the fact that the claim dollar would be held until the premium had been collected. Example 5: An application is taken on Saturday, April 1st requesting an Effective Date of April 15th. Monthly EFT payments are requested, with the premium withdrawal date of the 1st of each month. In this example, the policy’s Effective Date is Saturday, April 15th and the initial premium draft will occur immediately upon approval. All subsequent drafts will take place on the 1st of the month as requested. **WE DO NOT PRORATE OUR POLICY PREMIUMS**
10
Made with FlippingBook Ebook Creator