Insurance premium collection letter example

GUIDELINES

  1. It's a collection letter, and your tone will be persuasive. The most compelling thing you can say is to stop your service for the client. But, you won't just ask for payment, you should also make the cancelation sound undesirable. So, this letter is a bit different than most collection letters.
  2. Remind the customer that the payment is due.
  3. Mention all the benefits of holding your company's insurance policy again.
  4. Inform the reader about the end date of coverage if he/she doesn't make the payment.
  5. Put emphasis on immediate payment.

SAMPLE LETTER

[Senders Name]
[Address line]
[State, ZIP Code]

[Letter Date]

[Recipients Name]
[Address line]
[State, ZIP Code]

[Subject: Normally bold, summarizes the intention of the letter] -Optional-


Dear [Recipients Name],

We just want to inform that we were not able to receive your September 1 premium payment. As you were already informed, your policy's grace period ends on October 15. You are a valued client of Zen Insurance for more than six years now, and you are benefited with low premiums with comprehensive coverage. Kindly remit your premium payment today so that your policy will not be canceled. We are happy to be of service to you.

Sincerely,

[Senders Name]
[Senders Title] -Optional-

[Enclosures: number] - Optional -
cc: [Name of copy recipient] - Optional -

Insurance premium collection letter example.

Further things to consider when writing notify letters to debtors

Further things to consider when writing notify letters to debtors

Notify Letters

Notify letters are letters sent to inform others about something important. These can be to notify someone of a lawsuit that has been filed against him/her, to inform a home owner that you are planning to move out, or to let various entities know that you have legally changed your name. Notify letters can also be used by companies to inform employees about changes in the company policy or to inform customers about the company's new location. In some cases, these letters have been used by employees prior to their resignation to inform employers that they (employees) will be leaving the company.

When writing notify letters, you need to be clear and direct to the point to avoid confusion. Clearly state the purpose of your letter. Ensure that the tone of the letter matches the announcement. If you are notifying the recipient about a demise, for instance, use a sensitive and empathetic tone. Conclude the letter on a positive note. It is worth noting that some notify letters such as those notifying moving out of rented property or leaving a company should be sent several days in advance. Those about legal matters should bear the necessary signature.

Letters to Debtors

Letters to debtors are letters you write to people or institutions that owe you money. Mostly, these are collection letters to inform the recipients of the defaulted payments or demand letters to warn them about eventual legal actions. These letters are usually sent after unsuccessfully trying to get your payment, and it is time to take a more serious action. If you are running a business and you have clients who haven't paid for merchandise or services, your business could suffer financial uncertainty and difficulties. But then, you want to maintain goodwill and not damage the business' s reputation in the community.

When writing letters to debtors, especially those asking for payment, you need to be professional. Start with a friendly letter and if the failure to pay continues, get progressively more serious. Provide important details about the debt - state how much is owed and when the payment should be made. For subsequent letters, use a firm tone but be considerate and professional so as not to ruin the possibility of future deals with the recipient. Recount any conversations that have happened since the first letter. End with a note of anticipation to having the situation resolved.

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