Temporary Payment Option in Response to COVID-19 Crisis

Overview

In support of our policyholders, TFPA is responding to the COVID-19 crisis by:
 
1. Accepting 30% of the total annual amount due to issue a policy and billing the remaining balance in three installments.

2. Temporarily waiving payment processing fees.

  • Waiving the $10.00 fee for a policyholder making a payment over the telephone.
  • Waiving the $5.00 per installment payment fee for all installment plans.
  • Waiving the $5.00 late fee for any full payment or installment payment received after the due date.
  • Insufficient funds (NSF) fees will still apply.

3. Temporarily extending the grace period for the 2-pay and 4-pay installment plans from three to 30 days.

  • Currently, there is no extended grace period for the 10-pay plan.

 

These payment and fee accommodations:

  • Are temporary.
  • Are effective immediately.
  • Are available to all TFPA policyholders impacted by the COVID-19 crisis. Interested policyholders and their agents do not have to notify TFPA if they are using this option.
  • Will remain in place for all new business and renewals until TFPA determines it is no longer necessary.

 

Additional Details

Payment Plans

TFPA offers four payment plan options: full-pay, 2-pay, 4-pay, and 10-pay. Each requires a different minimum initial payment, with any remaining amount due paid in installments.

Full-Pay
What it is: A full-pay policy requires 100% of the annual amount due to be paid.
How impacted: The temporary payment option does not impact the timeline of this payment plan. However, the $10.00 payment processing fee is waived for policyholders who choose to make a payment over the telephone with our Agent Services team.

2-Pay
What it is: If at least 60% (but less than 100%) of the total annual amount due is received as the down payment, the policy will be entered as a 2-pay plan. The remaining balance is due 6 months from the policy effective date.
How impacted: Normally, if the second payment is not paid by its due date plus a three-day grace period, the policy is cancelled. The temporary payment option extends the grace period on the second payment to from three to 30 calendar days. Certain payment processing fees are also waived for 2-pay payment plans under this temporary payment option (see Payment Processing Fees below).

4-Pay
What it is: If at least 30% (but less than 60%) of the total annual amount due is received as the down payment, the policy will be entered as a 4-pay plan. The remaining balance is spread across three additional payments. The second payment is due 90 days after the policy effective date.
How impacted: Normally, if the second payment is not received by the due date plus a three-day grace period, the policy is cancelled. The temporary payment option extends the grace period on the second payment from three to 30 calendar days. Certain payment processing fees are also waived for 4-pay payment plans under this temporary payment option (see Payment Processing Fees below).

10-Pay
How it works: If the policyholder elects the 10-pay payment plan when their policy application is submitted and pays at least 15% (but less than 30%) of the annual amount due as the down payment, the policy is entered as a 10-pay plan. The remaining balance is spread across nine additional payments. The second payment is due 25 days after the policy effective date. If that payment is not received by its due date, the policy is cancelled.
How impacted: The temporary payment option does not impact the timeline of this payment plan. Certain payment processing fees are waived for 10-pay payment plans under this temporary payment option (see Payment Processing Fees below).

 

Payment Processing Fees

What they are: Under normal circumstances, TFPA charges certain fees to its policyholders. These include (1) a $10.00 fee for a policyholder making a payment over the telephone with our Agent Services team, (2) a $5.00 per installment payment fee for each of the installment plans, and (3) a $5.00 late fee for any full payment or installment payment received after the due date but before the end of its grace period.
How impacted: TFPA has temporarily waived the fee for payment by telephone, installment fees, and late fees until further notice. Insufficient funds (NSF) fees still apply.
 

Questions?

Policyholders are encouraged to contact their agent with any questions or concerns about this temporary payment option. They can also contact the TFPA Agent Services team at agentservice@twia.org or (800) 979-6440.