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Setting your clients up on a monthly draft for their life insurance premiums is an easy and efficient way to ensure their monthly payments are made timely and consistently. Please utilize this guide to make sure you correctly complete the PAC Authorization Form with your clients.

STEP 1:

Check off the first box indicating that the form is being submitted with a new application (versus making a change to an InForce policy).

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STEP 2:

Determine if the client wants to have the initial premium drafted.

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If this second box is checked, the first premium will be drafted from the client’s account upon underwriter approval for cases that are “approved as applied for.” The effective date will also be set up on this same day that the first premium is drafted.

If this second box is not checked, FGL will not be authorized to draft the initial premium and the company will be expecting a paper check, 1035 transfer or revised PAC form in order to pay the first premium.

STEP 3:

If your client wants to have the initial premium drafted but prefers to determine his/her specific draft date, this must be indicated by checking the appropriate box.

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If all three boxes are checked, and a date is indicated, the first premium will be drafted from the client’s account on or around the date specified. This will also be the effective date. The policy will not be made active and moved to an “issue paid” status until this date. This could mean a delay in issuing the business after approval as we will be waiting for the date indicated.

Please Note:

• The effective date of the policy must match the draft date.
• Valid draft dates are the 1st through the 13th and the 16th through the 28th only.
• After issue, the draft date of the policy cannot be changed to a date later in the month. For instance, if the client selects an effective date of the 10th, the draft date cannot be changed to the 20th at any time in the future. The client would have to choose a new date from the 1st through the 9th as their draft date.