Welcome to our latest video, where we explain the evolving landscape of insurance installment options. Traditionally, insurance policies were often paid on an annual or six-month basis, allowing policyholders to pay the full premium upfront. While those options still exist, the significant changes have occurred in the realm of installment plans. Approximately 70% of insurance companies have introduced adjustments that now necessitate a larger down payment to initiate the policy. In some cases, the first payment may represent 30% of the total premium, with the remaining payments spread out over the agreed-upon period.
As the insurance landscape continues to adapt, understanding these changes in installment structures is crucial for policyholders to make informed decisions about their coverage and budgeting. In this video, we’ll explore the nuances of these adjustments, providing you with valuable insights into how insurance installment options have evolved and how they might impact your financial planning. Stay tuned as we break down the details and offer guidance on navigating these changes in the world of insurance premiums.
Our owner and founder, Pat Brennan, explains more. Check out the video below!
How Have Some Insurance Installments Changed? – Entrust Insurance, St. Clair Shores
Video Transcription
“Most commonly, you would have a yearly pay or a six month pay in full, you would just pay the whole thing off. Those are all still available, where the billing change has been impacted on the installment options, not all, but they actually probably 70% of companies have started requiring a larger down payment to start the policy. So they may still offer six payments over six months or 12 payments over 12 months. But they may now say “hey, your first payments gotta be 30% of the total premium. And then the remaining payments are just amortized out.” Some companies may only offer a five payment plan, where they collect first and last month upfront, you have four payments and then the sixth month there is no payment. Some companies are doing this renewal after renewal and some companies are doing that only if the client is a new client purchasing a new policy. And then upon renewal, they will even out and offer equal installments across the board.”
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