How does Inclined handle late Premium Payments on policies?

Inclined freezes iLOCs for late premiums, preventing APLs. After 30 days past due, they draw from the iLOC to pay overdue premiums. If insufficient funds, the account may close. This process protects policies while maintaining compliance.

At Inclined, like most lenders, you are required to make your premium payments on time while your line of credit is open. This article outlines our process for handling late premium payments and preventing automatic premium loans (APLs), if you don’t make a premium payment on time.

Key Points:

1. Late Premium Payments: Late premium payments to your insurance carrier are considered to be a default on your iLOC.
2. Temporary Freeze on iLOC: Upon receiving any late premium notification, your iLOC will be temporarily frozen from additional draw requests. This freeze will remain in effect until we can confirm with the carrier that the premium payment has been satisfied, with a paid-to-date extending into the future.
3. Preventing Automatic Premium Loans: We do not allow Automatic Premium Loans (APLs) on your policy.
4. Proactive Payment from iLOC: If an overdue premium payment is not resolved within 30 days of the premium due date, we will attempt to send a payment to the carrier using a draw from your iLOC to satisfy the overdue amount. If there is insufficient capacity on the line, we may have to close your account and transfer your balance back to the carrier as a policy loan.

Our Process:

1. Late Payment Notification: If we receive notice from your insurance carrier about a late premium payment, we will immediately contact you.
2. iLOC Status: Your iLOC will be frozen for additional draws until we confirm with the carrier that the premium is paid and up-to-date.
3. Grace Period Monitoring: We closely monitor the grace period to ensure it doesn't expire, which would trigger an APL.
4. Payment Deadline: You have 30 days from the premium due date to resolve the overdue premium payment.
5. Automatic iLOC Draw: If the payment isn't resolved within 30 days, we will automatically draw from your iLOC to pay the overdue premium. If your line is at or near its maximum balance, we may not be able to do this on your behalf. To avoid your line being transferred back to the carrier and closed, please make sure to pay your premiums on time.
6. Unfreezing the iLOC: Once we verify that the premium is paid and the policy is in good standing, we will unfreeze your iLOC for future draws.

Why This Process Matters:

• Protects Your Policy: By preventing APLs, we help maintain your policy's cash value and avoid potential complications with your iLOC. Many people aren’t aware that having accumulated loans and interest such as an Automatic Premium Loan (APL) can negatively impact your death benefit of a whole life insurance policy. This alone is a good reason in our mind to avoid an Automatic Premium Loan (APL)!
• Maintains iLOC Compliance: Keeping premiums current ensures your policy remains in good standing as per your iLOC agreement.
• Provides a Safety Net: The automatic draw feature ensures your policy doesn't lapse due to missed payments.

What You Should Do:

1. Stay Informed: Keep track of your premium due dates and pay them on-time, everytime.
2. Act Promptly: If you receive a late payment notification, address it by making your late premium payment immediately.
3. Seek Advice: Contact your Financial Advisor if you're having difficulty making a payment or have questions on premium payments
4. Contact Us: If you have questions about this process, please reach out to our support team at support@inclined.com

At Inclined, we're committed to helping you manage your whole life insurance policy and iLOC effectively. If you have any questions about this process or your account, please don't hesitate to contact our support team.