Brokers AllianceWhy choose a premium deposit account?
A premium deposit account gives a client one place to park the money for a policy that is funded over several years, so the premiums get paid on schedule and the balance keeps earning while it waits.
What a premium deposit account actually is
Some products are not paid for all at once. They call for a premium every year for a set number of years. A premium deposit account lets a client fund that whole schedule with a single deposit up front. The carrier holds those dollars and draws each year's premium from the account as it comes due, and the balance that has not been used yet continues to earn interest.
For a client who has the money ready now, that is a cleaner way to commit. Instead of writing a check every year and remembering to do it, the client makes one funding decision and the account handles the rest. The premium gets paid on time, every time, without the client having to track it.
What the client gets out of it
The appeal is simplicity paired with the money staying at work. Here is what makes the concept easy to present.
When to put it on the table
The concept lands best with a specific kind of client and a specific kind of product.
If a case checks those boxes, a premium deposit account is worth raising early in the conversation. It turns a multi-year commitment into a single, simple step, and it keeps the client's money earning the whole way through. Our team can walk you through where the concept fits in a case and how to position it.
Ready to put this concept to work?
Brokers Alliance has been independently owned since 1982, out of Fountain Hills, Arizona, and we build cases with agents, agencies, IMOs, and BGAs every day. Call (866) 872-9394 or reach out and we will help you place it.
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