Premiums ordinarily may be paid annually or on a "modal" basis; semi-annually, quarterly or monthly.* The amount of a modal premium is greater than a simple fraction of the annual premium-for example, a quarterly premium is greater than 1/4 of an annual premium. This is because a modal premium includes adjustments for such factors as additional collection costs and the fact that the Company does not receive, and have the use of, the entire premium at the beginning of the policy year.

The difference between the total modal premiums for the year and the annual premium can be expressed in the form of an Annual Percentage Rate (APR). The modal premium APR equates the additional charges for a modal payment to the interest rate on an installment loan.** For example, at the beginning of the policy year, the amount of the "loan" would be the annual premium less the first modal premium.

To find the APR related to the modal premiums you are paying on your United Heritage life insurance policy***, enter the premium amounts and premium frequency below and click on SUBMIT. To repeat the process for additional policies, click on CLEAR. If you need additional premium information for your policy, please contact your United Heritage representative.

*Monthly premiums may be paid only through a monthly preauthorized check plan.

**Unlike loans, however, modal premiums are not a debt owed to the Company. The policyowner is under no obligation to continue paying modal premiums. However, if a premium is not paid when due, the policy may terminate or the coverage may be decreased.

***Our calculator will only display the APR for the modal premium on a United Heritage life insurance policy. Other insurance companies may use different modal factors. To use an APR calculator that is not company-specific, please click here. The Insurance Forum is an independent entity and does not endorse United Heritage, its products, or any other insurance companies or their products.