What Does Deposit Term Life Insurance Mean?
Deposit term life insurance is life insurance that requires a deposit in addition to the premiums paid. This deposit is made over the course of the policy period. Once the policy period expires, the deposit and the interest that has accumulated on it can be used to pay for another policy period or to even get an ordinary life insurance policy.
Insuranceopedia Explains Deposit Term Life Insurance
Deposit term life insurance can be voided for a number of reasons. For example, if a person stops paying premiums during the term of the policy, this can void the policy. If a policyholder decides at the end of the the deposit term life policy period that he or she would not like to buy additional life insurance, then he or she has the option to take out the money that was deposited. Due to the accumulated interest, the amount of money could be significantly more than the amount that was deposited.