An Electronic Funds Transfer (EFT) is a safe way to move money from one bank to another. For the Military Benefit Association (MBA), it’s used for premium payments for insurance. It makes paying for life insurance, TRICARE supplements, or other benefits easy and hassle-free.
The MBA’s EFT service lets members have their premiums taken out automatically each month. This means no more worrying about missing payments or dealing with paperwork every month. It’s easy, safe, and reliable.
Why Use EFT for Your Payments with MBA?
Using EFT for premium payments with MBA has many benefits, including:
- Convenience: Payments are taken out automatically, so you don’t have to do it every month.
- Security: EFT is a safe way to pay, reducing the risk of lost checks or identity theft.
- Time-Saving: Your premiums are paid on time automatically, without you needing to do anything.
- Simplicity: After setting it up, your payments will go through automatically every month.
Using EFT with MBA is a straightforward way to keep your life insurance or TRICARE coverage without worry.
How Does the MBA EFT System Work?
The process of using EFT with MBA is easy and hassle-free. Here’s how it works:
- Authorization Agreement:
First, members need to fill out an EFT Authorization Agreement. This lets MBA take out your monthly premium payments from your checking account. - Attach a Voided Check:
You also need to attach a voided check from your checking account. This ensures MBA has the right banking info for processing payments. - Monthly Debit:
Starting on or after the second day of each month, MBA will automatically take out your premium. You’ll see the deduction in your bank statement, so you’ll know when it was made. - Account Changes:
If you want to change your bank or update your account details, just fill out a new EFT Authorization Agreement and send it to MBA. Make sure to do this before the 22nd of the month to avoid any issues with your next payment. - Insufficient Funds:
If your account doesn’t have enough money on the scheduled date, or if the debit is rejected, your insurance might lapse. Your EFT privilege could also be taken away. Always make sure your account has enough funds each month to avoid this.
Steps to Set Up EFT with MBA
Setting up EFT with MBA is simple and only requires a few steps:
Step 1: Complete the EFT Authorization Agreement
- The EFT Authorization Agreement is available from MBA. You’ll need to fill in your personal details and your checking account information.
Step 2: Attach a Voided Check
- Attach a voided check from your checking account to the form. This check gives MBA your account number and routing number. This ensures payments are taken from the right account.
Step 3: Submit the Form
- After filling it out, send the EFT Authorization Agreement and voided check to MBA. You can mail or fax it. MBA’s contact info is on the form.
Step 4: Enjoy Seamless Payments
- Once MBA processes your form, payments will automatically be taken from your account. This happens on the second day of each month.
Benefits of Using EFT for Insurance Premium Payments
Using EFT for your insurance payments with MBA has many advantages:
1. Reliability
EFT ensures payments are made on time, every time. You won’t have to worry about missing deadlines or forgetting to send a payment.
2. Flexibility
If you need to change your banking details or branch, just update your EFT Authorization Agreement. MBA will take care of the rest.
3. No Paperwork Hassles
With EFT, you won’t need to deal with checks or payment slips every month. Everything is handled electronically.
4. Secure Transactions
EFT payments are processed securely. This reduces the risk of fraud or theft.
What Happens If Funds Are Insufficient?
If there aren’t enough funds in your account on the scheduled debit date, several things can happen:
- Lapse in Coverage: If the payment can’t be processed, your life insurance policy or TRICARE coverage might lapse. This means you won’t be covered until the issue is resolved.
- Revocation of EFT Privileges: If the problem continues, MBA might take away your EFT privileges. You’ll have to switch to another payment method.
Steps to Take If Funds Are Insufficient
- Ensure Funds Are Available: Check your account to make sure there are enough funds to cover the premium.
- Make a Manual Payment: If EFT fails, you might be able to make a manual payment. This can prevent a lapse in coverage.
- Contact MBA: If you have any concerns or questions, contact MBA for help.
How to Update Your EFT Information
It’s important to keep your EFT details up to date. Here’s how to manage changes:
| Scenario | Action |
|---|---|
| Changing Banks | Complete a new EFT Authorization Agreement with your new bank details and submit it to MBA. |
| Changing Account Type | If you change your account type (e.g., from a checking to a savings account), complete a new form with the updated information. |
| Switching Banks or Branches | Ensure that your new bank details are updated in the form, including the correct routing number. |
Deadline for Changes
Any changes must be submitted by the 22nd of the month. This ensures they are in place before your next payment.
FAQ: Frequently Asked Questions
1. What is the purpose of a voided check?
A voided check helps MBA get the right info for your bank account. It also stops payment mistakes.
2. How long does it take to process my EFT setup?
After you send your EFT Authorization Agreement, it takes 1-2 business days for MBA to set it up.
3. Can I stop EFT payments?
Yes, you can cancel EFT payments anytime by asking MBA. Just do it early to avoid any issues.
4. How can I check the status of my EFT payments?
Check your monthly bank statement to see if payments are being taken out.
5. What happens if I miss an EFT payment?
If you miss a payment, your life insurance or TRICARE coverage might lapse. Contact MBA right away to fix it and keep your coverage.
Conclusion
EFT makes paying your MBA premiums easy and safe. Just fill out the EFT Authorization Agreement and attach a voided check. This way, you avoid missing payments and losing coverage.
With EFT, you don’t have to worry about paying every month. It’s all automated, secure, and reliable.
Sign up for EFT with MBA today. You’ll have peace of mind knowing your life insurance and TRICARE premiums are paid on time, hassle-free.
