There are several ways to pay premiums into your IBC system. Using the policy premium provisions afforded to you by the insurance company is imperative to use these well so you can make this system work for your cash flows.
In paying premiums, you can pay full premium annually, monthly, or a combination of the two.
Here are a few opportunities for you as it relates to paying your Paid-Up Additions Rider:
Annual to Monthly
-You may be drafting your full premium (base and PUA) on a monthly basis and get into a cash flow crunch. You can change the PUA billing mode from monthly to annual to reduce your monthly premium. This will also give you the ability to make a lump-sum premium payment in the policy year as you have cash.
-You may have been paying your premium on an annual basis but not have the cash for full premium. You can pay an annual base premium and make your PUA premium through the year. You can also adjust to put the base premium on a monthly draft and pay your PUA premium through the year.
Monthly to Annual
-You may have been paying premium monthly but have cash on hand and want to put it into your IBC system. You can change from a monthly premium mode to pay annually at your policy anniversary to get cash value accessible most quickly.
Making the PUA Premium Payments
If you are looking to make these annual or lump sum PUA premiums here are the simplest ways to do so:
1) Utilize your bank's online bill pay as much as possible. Refer to the policy loan repayment guides in this group's topics. You can use your bank's bill pay to direct payments to your policy, including the specific policy number and directing the payment to your Paid-Up Additions Rider.
Here is a quick guide to each insurance company we are using:
Ameritas:
-Bill pay
-Via online account access - pay your bill
-Phone - 1.800.745.1112
Ohio National:
-Bill pay
-Check in the mail
Penn Mutual:
-Bill Pay
-Via online account access - make payment
One America*:
-Bill Pay
-Online Service Request Form - ECheck
Mass Mutual:
-Bill Pay
-Phone - 1.800.272.2216
Lafayette Life*:
-Bill Pay
* Lafayette Life and One America do require a minimum PUA premium. If you are drafting monthly premium you must draft a minimum $10 a month to the PUA premium above your base premium. If you pay the premium annually, you must pay $120 minimum per policy year towards the PUA for these companies.