deposit term vs. rop term

Apr 7, 2008

  1. Mr. Bill
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    What exactly are the differences? Tax differences as well? Thanks
     
  2. policy doctor
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    I haven't heard about deposit term since Venita Caspel wrote her book about it.

    So who is selling that one?
     
  3. Mr. Bill
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    will have to find out, I was thrown a loop as well.
     
  4. TXINSURANCE
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    I am not a life guy can someone explain to me what is "deposit term"?
     
  5. Steve
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    I don't think it's used much any more. If it is, I imagine it's watched closely by the regulators.

    They modify the premium structures of term policies, and pay a ton in the first year, much like a single pay wl or ul. I think your "return" or even your policy term was speculative, based on the invested portion of the premium. Does that ring a bell with anyone?
     
    Steve, Apr 7, 2008
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  6. arnguy
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    I think deposit Term went the way of "high button shoes!":skeptical:
     
    Last edited: Apr 8, 2008
    arnguy, Apr 8, 2008
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  7. GreenSky
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    I've been holding onto my high button shoes. I think they'll come back in style soon.

    Rick
     
  8. arnguy
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    Good idea, Rick. Do you still have your celluloid collars and shirt garters?
     
    Last edited: Apr 24, 2008
    arnguy, Apr 8, 2008
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  9. JMO Fan
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    Deposit term was often level term with a doubled first-year premium. At the end of the term, the extra (or full) first-year premium was returned. NAIC (about 1980) changed nonforfeiture law so part of the premium/deposit had to be available as cash value before the end, product died of cash value poisoning.

    ROP term usually has level premium (i.e., no first-year extra), with the full sum of premiums refunded at the end of the level-premium period. The same NAIC law applies, but isn't as tough on ROP as it was on deposit term. However, some states (and likely the Interstate Compact) are toughening their rules so more cash value has to be available before the ROP is paid, might make ROP slightly more expensive.
     
    Last edited: Apr 23, 2008
    JMO Fan, Apr 23, 2008
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  10. NewHealthStrategies
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    The boys in mid-town love high-button shoes..... Ding, Ding, Ding when the trolley........
     
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