Payment coupons

Overview

Root allows you to create payment coupons via the Root management dashboard or the API.

Payment coupons allow you to credit a policy ledger for scenarios such as reward programs or scheduling payment holidays for policies. There are two types of payment coupons supported, namely payment holidays and ad hoc payments.

Payment holidays

A payment_holiday payment coupon, allows you to grant a policyholder a payment holiday on their recurring premiums.

When creating a payment holiday coupon from the Root management dashboard, it is set to be redeemable within a particular month, from the current date looking forward.

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When creating a payment holiday coupon from the API, you need to specify a redeemable_from and redeemable_to date, which allows for bit more flexibility on defining redeemable periods that are not specific to a particular month.

In the event of wanting to create a payment holiday for June 2025. The year and the month can be specified via the Root management dashboard to create the payment holiday coupon which will be redeemed on the policy’s next billing cycle.

When the API is being used, the first and last dates of June 2025 can be specified with a redeemable_from date of 2025-06-01 and a redeemable_to date of 2025-06-30 to get the same result.

{
  "type": "payment_holiday",
  "redeemable_from": "2025-06-01",
  "redeemable_to": "2025-06-30",
  "reason": "Test"
}

Before submitting a collection request for a policy, the platform will check if any payment_holiday payment coupons are available for redemption on the given billing date. In the event of there being such payment coupons, one of these will be redeemed in lieu of the policy's recurring payment. When no coupons are available for redemption, normal collections will resume using the payment method assigned to the policy.

The redemption of a payment holiday coupon results in the ledger being credited with the policy premium at that point in time with no premium collection request being issued. An outstanding balance on a policy is unaffected by the redemption of a payment holiday coupon and will thus still be owed on the next billing cycle.

Ad hoc payment coupons

An ad_hoc payment coupon can be created for any amount and can be redeemed at any time. When an ad_hoc payment coupon is redeemed, the ledger is credited with the given amount.

Ah hoc coupons are flexible and can be used for a number of different use cases such as:

  • Discounts
  • Rewards programs
  • Writing off outstanding balances

These are currently not available on the Root management dashboard. These can be created via the API with a given coupon amount and type of ad_hoc.

{
  "type": "ad_hoc",
  "amount": 200,
  "reason": "Test"
}