Deposit Term Insurance

Enhanced Financial Security for Consumers

More and more insurance buyers are purchasing deposit term insurance products on top of their current plans for enhanced financial security. United Agencies, Inc. in Cape Canaveral, FL is here to help you provide the ideal deposit term insurance policy for your customers! Look through this page for more information about our term insurance plan.

Deposit Term

What is Deposit Term?

Deposit term is a ten-year renewable term coupled with an annuity.

How does it work?

The Val-U-Plus covers a variety of needs in one policy. It is a ten-year modified term. The first-year premium sets the amount for the ten-year period. In the second year, the policy reduces to approximately half of the first-year rate. The policy continues to bill at the first year premium with the difference going into an annuity (optional). At the end of the ten years, the policy returns an endowment greater than twice the amount of the difference between the first- and second-year insurance premiums. That amount becomes available at the end of the ten-year term. At that time, the policy is guaranteed renewable for another ten years, or the client may elect to continue as a decreasing term to age 100, or convert the insurance to a permanent plan of insurance then available by the company.

Riders Available

✓ Critical Illness – Advance 50% of face amount for covered conditions (Heart attack, stroke, cancer, etc.)
✓ Additional Purchase Option – Purchase additional coverage at the end of the ten-year periods without proving insurability.
✓ Waiver of Premium – Premiums are waved based on the first-year premium, which means the annuity option is covered as well.
✓ Monthly Disability Income – Up to $1,500 a month.

Why a ten-year term?

Things change over the years. Reasons for insurance may have changed making another type of insurance better for the policy owner. Choices on beneficiaries may have changed for the policy owner.

Where can I use this?

Deposit term is a flexible plan with several options. With the different coverages available, it’s good for several markets.

Workplace

Covering life, disability, critical illnesses, and retirement, the Deposit Term is a great package for small businesses to offer their employees. Plus, if the employee leaves the company, they can simply pay the premiums by changing the payment to a direct payment or bank draft and keep their insurance.

Children

Aside from the basic need for coverage, the annuity is a good place to begin putting money aside for college. The tax-deferred status means not paying taxes on the interest earned until withdrawal. Plus, when used for higher learning the government penalty for early withdrawal is waived.

Family Coverage

The deposit term also has riders including additional, cheaper insurance on the primary insured, as well as other family members. Both a child rider, as well as a family rider that includes the spouse (or insured) with additional coverage.

Where’s the sizzle?

As a guaranteed renewable ten-year term, should the client choose to renew the plan for another ten-year term, it is essentially a new sale. So as the plan re-enters, it pays new first-year commissions all over again. This is a great way for an agent to build a block of business that can pay for many years to come.

Having a lot of riders gives more than just flexibility, it can stack the riders in such a way that it can become something that can financially save a family without the primary insured dying.

Let’s consider a gentleman who purchases a Deposit Term with critical illness, waiver of premium, and additional purchase option. He purchases a $100,000 policy and seven years down the road he has a stroke. He is now partially paralyzed and can no longer do his general work. If he had simply purchased a whole life policy, he would only have a few hundred dollars in his cash value to pay anything significant. Because he didn’t die, he has a life insurance policy payment to make, his house bills, and he’s disabled. Here’s where stacking of a few regular options helps.

First, having a waiver of premium means he’s not paying insurance premiums. That in and of itself is highly helpful, but a waiver of premium waives based on the first-year payment. This means his annuity is also being funded.

Second, he’s just had a stroke. His critical illness pays out now. He gets half of his face amount, meaning a $50,000 check to help him pay medical bills his insurance may not cover (deductibles, medicines, co-pays, etc.). His base policy is reduced to $50,000, which means his premiums come down, and more of his waiver of premium benefit is now going to his annuity.

Third, his ten-year options become available. Because he has purchased the additional purchase option, now that he’s become virtually uninsurable, he can purchase an additional $100,000 Deposit Term policy. He still gets the endowment back, his regular $50,000 policy is still being paid for by the waiver of premium, and now he has $150,000 of insurance for the cost of $100,000.

Should he have purchased the monthly disability income rider, he would also have had additional money coming in for the duration of the rider.

There are few policies out there that can match these kinds of benefits.

Ask About Our Term Insurance Options

In addition to the deposit term insurance policy, United Agencies, Inc. also offers another accumulation product based on a permanent insurance plan. Similar to deposit term insurance, this plan begins with the initial premiums going to the life insurance plan with the option of depositing more into the accumulation account. In the second year, the premium drops down with the balance going into the chosen accumulation account. Call us today for more information about our term insurance options.