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Billing Cycles and Changing Payment Frequency

Overview

Simfuni allows payment frequencies and payment schedules to be changed throughout the life of a policy. When a payment frequency or payment date changes, Simfuni automatically recalculates future premium collections to ensure the customer pays the correct premium for their cover period. This includes adjusting payment amounts and schedules where required to align with the new frequency. Frequency changes can be performed regardless of whether the policy is current, in arrears, processing payments, or has future payments already scheduled.

 

Understanding Billing Cycles


Every policy has a billing cycle which defines the periods for which premium is charged.
Billing cycles are established when the policy is issued and are based on the payment frequency selected at that time. Simfuni uses these billing cycles as the foundation for calculating premium collections and managing future payment schedules.
In most cases, operators do not need to manage billing cycles directly. However, understanding that billing cycles exist helps explain why payment amounts may change when payment frequencies or schedules are altered.

 

Changing Payment Frequency

A policy can move between any supported payment frequencies, including:
  • Annual to instalment frequencies, such as monthly, fortnightly or weekly
  • Instalment frequencies to annual
  • One instalment frequency to another
When a frequency change occurs, Simfuni automatically:
  • Recalculates future premium instalments
  • Updates the payment schedule
  • Preserves the correct premium collection for the customer's cover period
The first payment following a frequency change may differ from the ongoing payment amount if an adjustment is required to align the policy with the new schedule.

 

Changing Payment Dates


When changing a payment frequency or payment schedule, operators can select a payment date from today through to the end of the allowed selection window.
The selection window is based on the policy's new payment frequency:
  • Weekly payments: up to 7 days from today
  • Fortnightly payments: up to 14 days from today
  • Monthly, quarterly, half-yearly or annual payments: up to one month from today
This gives operators flexibility to align the customer's payment date with their preferred schedule, while ensuring premium collections remain within a controlled billing period.
The selected date becomes the first payment date under the new schedule, after which future payments follow the rules of the selected frequency.
 
 
 

Why Payment Amounts May Change


When a payment frequency or payment date changes, the time between the customer's previous schedule and their new schedule may not align perfectly.

To ensure the customer pays the correct premium overall, Simfuni may adjust the first payment amount.

As a result, the first payment after a change may be:
  • Higher than the ongoing payment amount, or
  • Lower than the ongoing payment amount
After this adjustment, future payments will typically follow the standard amount for the selected frequency.
 
 

Policies in Arrears

Payment frequency and payment date changes can be performed even when a policy has outstanding arrears.

Where arrears exist, Simfuni will continue to manage the outstanding balance separately from the policy's future payment schedule. Operators should review any existing repayment arrangements after making a frequency change to ensure they remain appropriate.
 
 

Example

Sarah pays her premium monthly and wishes to move to fortnightly payments.
An operator changes the payment frequency from monthly to fortnightly and selects a new payment date within the allowed selection window. For fortnightly payments, this means the new payment date can be today or any date up to 14 days from today.
Simfuni automatically recalculates the future payment schedule and determines whether an adjustment is required for the first payment. Once the first payment has been collected, future payments continue according to the new fortnightly schedule.
Throughout the process, Simfuni ensures Sarah is charged the correct premium for her cover period while avoiding duplicate collections or missed premium.