Does your client use a cash equivalent (money orders, cashier’s checks, etc.) to make a payment on their National Life Group (“NLG” or the “Company”) insurance policy? If you answered yes, please continue to read about changes National Life Group has made to the amount allowed as of July 1, 2025.
What is New?
As of July 1, 2025, the amount of cash equivalents (“CE”) allowed per household will be decreased to $5,000 in a rolling 12-month period. Additionally, if NLG learns the client has a personal bank account, those individuals will no longer be allowed to use CE to make payments on their insurance policies.
Why were these changes made?
NLG is making this change to provide additional protection to the client, you, and to the Company. CE Payments are subject to postal carrier delays and compliance reviews and could still be rejected upon receipt which may result in delays which are undesirable. Making payments via EFT is the safest and most efficient way to make a payment and offers more protection for the client.
In addition to the above, the Company has regulatory reporting requirements when it identifies red flags for potential money laundering. Failure to adhere to these reporting requirements puts the Company at risk both reputationally and for regulatory fines. Several money laundering red flags are presented when clients use CE to make payments on their insurance policies. Those red flags include, but are not limited to:
- Potential tax evasion when the policyowner operates a cash business;
- Potential cash proceeds derived from other criminal activity;
- The policyowner has a bank account but continues to make payments with CE or ‘structures’ payments – using a combination of CE and money from a personal bank account to make payment; and/or
- The policyowner has exceeded the CE amount allowed multiple times.
The Company is in the process of reaching out to potentially impacted agencies and agents.
