The Magic of Single-Pay Premiums
Petersen International prides itself on its customer service. And that attention to service doesn’t end at the quick turnaround of insurance quotes, flexible underwriting or policy servicing by our helpful and professional staff. We also strive to make the paying of premiums as easy and as comfortable as possible for the agents we work with and their clients.
We have developed platforms to receive payment for services by online EFT, credit cards, money orders, bank drafts, personal or business checks as well as wire transfers. PIU allows for most premiums to be accepted annually, semi-annually, quarterly, monthly and in-full for short term policies. These premium payment modes are available on all of our product lines that require paper applications, and are designed to meet the varying budgets and financial needs of every client.
Another payment option that has not been mentioned, but requires special attention and explanation is that of the single-pay premium. Most Petersen International fully-underwritten, individual disability policies are issued with multiple-year terms of insurance, commonly three to five years. That means that the policy wording, definitions and premium rates are guaranteed for the three to five-year term of insurance, and PIU offers the unique ability to accept single-pay premiums for the entire term of insurance. Therefore, clients can pay the annual payments for their entire three or five-year policy upfront at the time of initial policy issuance.
Now the magic of the single-pay premiums is that they come with grand discounts – 10% on a three-year term policy and 20% on a five-year term policy. The single-pay discount on a five-year policy is incredibly equal to a full year’s worth of premium. It’s the equivalent to a client receiving five years of valuable disability income protection for the price of four years.
Furthermore, single-pay disability premiums provide special benefits for the agents on these cases. Brokers of record earn first-year level commission on the entire paid premium (less taxes). So your clients receive huge discounts on their policy, and you get paid high-level commission on the entire policy term in advance.
The next time you prescribe Petersen International Underwriters for your clients’ disability insurance needs, be sure to pay attention to the offer of a single-pay premiums. Call (800)345-8816 to learn more about this option.