What is Deposit Term Insurance?

Deposit term insurance is a type of life insurance that provides an alternative to traditional term insurance. Here are the basics of deposit term insurance and how it works.

Deposit Term Insurance

With deposit term insurance, you are going to provide a certain amount of money that will act as a deposit in the first year of purchasing your life insurance policy. You will also continue to pay your regular life insurance premiums at this time. The life insurance aspect of this policy will act just like traditional term insurance. You are going to continue to pay your premiums and you will be provided with a death benefit over a certain amount of time. The key difference with this type of life insurance is that the deposit that you provide is allowed to accumulate interest over the term of the policy.

How it Works

At the end of the insurance term, you will be able to choose between 2 different options. You will be able to cancel the policy and take the deposit back and any of the interest that was accumulated. The other option that you have is to renew the policy without having to go through any medical exams or other processes in order to get the policy renewed. 

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