In the 1970's a popular life insurance policy written was called
Deposit Term Life Insurance....basically it was a term policy with an
annuity rider.  The biggest companies in the business were Puritan
Life out of Providence Rhode Island and Lincoln Benefit Life....I
don't think these companies are still in business....can you find out
which companies still sell this policy?  Thanks, Randy

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Request for Question Clarification by pinkfreud-ga on 09 Mar 2005 13:15 PST

Hi again, Randy!

Is this the kind of thing you're looking for?

http://www.unitedagencies.cc/deposit.html

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Request for Question Clarification by pinkfreud-ga on 10 Mar 2005 18:00 PST

Randy,

Did you have time to check the site linked above? I do believe this
company is one of the very few to still offer deposit term life
insurance. Let me know what you think.

Your best bet if you're interested in such a product is to get 2 products:
Term Life Insurance 
  and
an IRA 

You will find that life insurance policies that include any other
product besides just life insurance are almost always a bad deal for
most people.  Whereas the tax benefits of an IRA are very appealing,
and if you have your IRA with 1 of many companies who offer it... you
can even turn your IRA into an annuity that pays you a certain amount
every month for the rest of your life.

Don't buy deposit term.  The term component was usually a losy price. 
If you want term insurance then buy term insurance.  Buy 1 year term
from a reputable firm (AAA rating from Bests).  Don't buy reentry
term.  Deposit term was usually reentry term and you had to requalify
after the end of the contract (usually 5 or 10 years).  There is
debate on select and ultimate term, but I would stay away from it.

Select and ultimate term is usually guaranteed renewable - as long as
you are willing to pay premiums - but the price rices very steeply
after a set number of years.  If you agree to get reunderwritten
(requalified) then you can get a price reduction.  This leads to
adverse selection and hece the reason the price is very cheap at the
outset and rises very steeply after about 5 years.  Adverse selection
(in this example) is where those who are healthy enough to requalify
for a lower price do.   What you are left with are those people who
are unhealthy.  Thus those that are left have a much higher mortality
rate than the original population. (the healthy people moved on to a
class of cheaper premiums)  Thus the insurance company has to price
for this higher mortality.  This higher price drives the healthy ones
out and leaves the less healthy people.  Which raises the price.... 
So if you happen to be somone who gets some sort of health condition
in the future then you are screwed.

Guarenteed renewable by attained age has a genteler slope on the
increases than the select and ultimate.  It starts out a little higher
but does not increase as quickly.

Also I would go for 1 year term guarenteed renewable.  This is usually
priced very competitevely.

As for the savings part the whole aspect of that depends on how well
you save, the tax advantaged treatement of life insurance proceeds,
what your current budget is etc.