Additional Deposit Privilege
Performing additional deposit privilege would increase the insured’s benefits in some other way. The term additional deposit privilege in insurance pertains to a clause in some current assumption whole life insurance policies such as universal life insurance (a combination flexible premium, adjustable life insurance policy- the premium payer may select the amount of premium he or she can pay and the policy benefits are those which the premium will purchase or the premium payer may change the amount of insurance and pay premium accordingly) that allows premiums without due schedule to be paid at any time before the date of maturity with regards to the policy. An exception to this happens when the insured has prominent, unpaid loan. In the event that there is an existing loan, additional deposits become suitable or shall be given first priority in opposing for the loan. The quota for additional deposit that will be probably accepted in most policies is at least $1000.
There are cases when people encounter money shortage due to lots of obligations pertaining to money transactions. If you are a member of an insurance policy, one way of lessening the burden of the responsibility to periodically pay your insurance plan is engaging this additional deposit privilege because there is no specific time of payment as long as the duration is covered in as much as it’s not the end of the contract. You can pay the required amount to complete your insurance within a period of time not beyond the maturity date of the policy but just possible if you got no record of an existing loan. Additional deposits are implemented when the loan is not yet totally paid for loan protection purposes.
Additional deposit privilege is a function under insurance that can be used to add an additional deposit to a classical life insurance agreement at contract level to extend the amount of benefits to be received but prior to this is the contract inception. The business course Change – Update-Relevant Change is applicable in this business transaction. The disbursement systems for additional deposits must have been characterized in FS-CD. Having at least one coverage of the contract to be altered that is premium payable, premium exempt or subjection to a one time deposit is a prerequisite. The allowable additional deposit tariff variants must have been defined also for the Life line of business in the Product Engine and the definition must be product-specific. The amount to be covered in the additional deposit is freely figured out. Speaking of Life line products, you can prefer one of the additional deposit tariff variants that are being explained in the product definition.
An example of an agency promoting additional deposit privilege is the Privilege Plus Savings Account, the first and only savings account which offers the privileged customers attractive interest rate on their savings and at the same time, protects them with free personal accident insurance coverage. The featured benefits here are higher interest than passbook savings account, free accidental medical reimbursement benefit and accidental permanent disablement benefit insurance coverage.