When is payment processed on a new policy or renewal?
Simply put, payment on a “Bind date” means that payment is taken in-order to issue the new policy or renewal. Payment is required at the check out to “bind” and issue the policy.
On policies that are paid Annually, the full payment is taken on the “Bind Date”. Meaning, the policy can be issued once the policyholder has approved payment at the checkout page.
On policies bound on a Monthly payment plan, the first payment is taken on the “Bind Date”. One month of premium is charged at the checkout page to bind and issue the policy. All future monthly payments are taken out on the “Bind Date” stated on the receipt.