FORT WORTH, Texas – The Texas Department of Insurance has officially approved a new endorsement for National Farm Life Insurance Company (NFLIC). The Policy Preservation Endorsement (PPE) replaces the company’s retired Advanced Premium Deposit endorsement, lovingly referred to by many agents as the “side fund.”
The primary function of the PPE and other similar endorsements is to prevent a policy lapse. This is accomplished by allowing policy owners to pay premiums in advance to store a balance of funds to be used as a premium payment in the event of a late or missed payment.
The PPE is different from the former endorsement in two distinct ways. First, policy owners must maintain a minimum balance of at least one modal premium payment in the fund at all times; this feature guarantees the endorsement’s ability to preserve the policy. Second, the minimum withdrawal from the PPE is $50, assuming that this amount along with one modal premium payment is in the fund. Other regulatory guidelines exist and are detailed in the endorsement. Training will be held at monthly regional meetings through the months of June and July 2021, and agents are encouraged to attend to learn more.
“Having the PPE in place provides agents an effective tool to sell and keep policies in force,” said Brad Coon, senior vice president for marketing. When asked about how the PPE is different, Mark Williams, senior vice president for investments, compliance officer and treasurer, stated, “This endorsement is an ideal blend of what provides value-added service to policy owners, maintains in-force business, offers efficiency for the home office and a product that is sound from a regulatory perspective.”
“This endorsement was the first request made of me by agents when I joined the company. So many more have asked for it since last July and I am happy we were able to fulfill the request,” said President, Dr. Kyle McGregor. The Policy Preservation Endorsement will go into effect on July 1, 2021.
Founded in 1946 in the Historic Fort Worth Stockyards, NFLIC offer products through more than 1,300 independent agents. Whole life insurance is the cornerstone product of the company and is complemented by a suite of financial services marketed to families across Texas.
