Premium Payments

For information about drafts, payments, and premium limitations, please review the information below.

Drafts

Select a draft date
For EFT drafts you may choose any day between the 1st and the 28th of the month. Please keep in mind the date chosen (if different than the issue date of your policy) because it may result in your account being drafted twice for the initial premium. For credit card drafts, the date drafted is the issue date of the policy.

Stop a bank draft (EFT)
The policyowner, active agent, or any individual named on the bank account may stop draft payments by contacting our Administrative Office. This request may be made by phone, fax, email or regular mail. We recommend a three-day advance notice. A quarterly billing will automatically generate when a bank draft (EFT) is stopped.

Change the financial institution for drafts

• If you are with the same financial institution, but the account number is changing, please contact our Administrative Office
• If your financial institution has changed, please complete the Electronic Fund Transfer Authorization form L-1683

Draft from a savings account
To draft from a savings account, please specify the savings account on the required Electronic Fund Transfer Authorization form (L-1683). Include a voided savings slip along with this form.

Change billing frequency

• You have a choice of being billed quarterly (four times a year), semi-annually (twice a year) or annual (once a year).
• If you are currently using our Electronic Funds Transfer (EFT) program (drafting from your financial institution) you have the choice to have your drafts taken monthly (12 times a year), quarterly (four times a year) or semi-annually (twice a year).
• We do not offer an annual EFT draft.
• If you are currently paying via credit card, the same EFT options are available. Please note Credit Card payments are only available on our term life insurance plans.
• A request to change the frequency of your billings/drafts may be made by contacting our Administrative Office. Complete an EFT (L-1683) and/or Credit Card form (L-2856).

Credit card draft

• Choose a different credit card draft date
  Selecting a flexible date for credit card draft is not available. The draft date needs to be on your policy anniversary date.
• When a credit card premium payment is rejected
  We will retry the same credit card two times, after the second time you will need to send in a new Credit Card Authorization form (L-2856).
• Change of credit card number
  For your protection, please complete a new Credit Card Authorization form (L-2856).

Payments

Time available after the due date to make a payment
Procedures for payment after the due date are different based on whether you have a term life insurance policy or an universal life insurance policy.

• Term life insurance policies
  For term life insurance policies, you have 31 days from the scheduled due date to make your payment or it will lapse for non-payment. Your coverage then ceases and there is no death benefit available. However, an easy reinstatement notice will be mailed after the 31-day grace period has expired. This notice advises you of an additional 15-day window in which you may submit your payment and have your death benefit once again become payable without having to complete any of the standard reinstatement paperwork.
• Universal life insurance policies
  For universal life policies, you have a 61-day grace period for your coverage. The grace notice is mailed the next business day following the premium due date. The additional 15-day window does not apply to our universal life policies.

Change of premium payments
Please contact our Administrative Office to change your premium payment. (L-2777)

Request a premium refund
If we have received your premium less than 30 days ago, you may request to have your payment refunded. Please contact our Administrative Office for his request, but please note that your correspondence must be received in our office within the 20-day window.

After the 30 days, premiums may be refunded, based on state guidelines. In certain circumstances, requesting a premium refund may terminate your coverage. For more information contact Client Communications.

Lapse Notice
If the policy is lapsed, please complete and submit the Reinstatement Application with the necessary back premium to our office for reinstatement consideration. Please contact our Administrative Office for the proper Reinstatement form and premium amount.

Premium due upon submission of the reinstatement application
Universal life insurance: For premium due, please contact your agent or the Administrative Office for premium amount.
Term life insurance: All back premiums from date of lapse to current are required.

Policy grace period
The grace period is a period of time after the premium is due, but prior to the policy termination. During this time period, only premium is necessary to keep the policy from terminating. Please refer to your policy contract for specific lengths of the grace period.

Severe Weather States
Click here to read more about which states allow for severe weather premium payment extensions.

Premium Limitations

Tax, Equity, Fiscal and Responsibility Act (TEFRA)
In 1982, congress established the limit of money that can be placed into a life insurance policy and still have the policy qualify as life insurance.

• If your policy has reached the TEFRA guidelines, you will receive a written notice when you may resume making your premium payments.
• The policy can only accept a maximum amount of premium to ensure that it continues to meet the definition of life insurance as outlined in the regulations.
• We will continue to accept loan repayments even if your policy has met the TEFRA guidelines. You may submit any repayments directly to our Administrative Office. Please indicate they are loan repayments. If your policy was previously on EFT, you will need to submit loan repayments to our office. We are unable to draft for only loan repayments.

Neither North American nor its agents give legal or tax advice. Please consult with and rely on a qualified legal or tax advisor before entering into or paying additional premiums with respect to such arrangements.