[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-305073-105":53,"doc-detail-305073-en":126},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":119,"head_meta":121,"extra_data":123,"updated_unix":125},105,"en","962mm-1-pda-feature-card-premium-deposit-agreement-pda","962MM-1 PDA Feature Card - Premium Deposit Agreement (PDA)","","Premium Deposit Agreement (PDA) provides a lump-sum funding approach for a life insurance policy while helping avoid a Modified Endowment Contract (MEC). A deposit establishes a Premium Deposit Account (PDA) that automatically pays the first and future annual premiums on the policy anniversary date. The flyer outlines key terms including eligibility for single life indexed universal life policies, deposit and premium payment limits, credited interest rate rules, taxation of interest via annual 1099-INT, withdrawal restrictions, termination triggers, compensation, and limits on 1035 exchanges.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":36,"@type":70,"position":76},"https://docshare.wps.com/template/forms/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/962mm-1-pda-feature-card-premium-deposit-agreement-pda/305073/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/962mm-1-pda-feature-card-premium-deposit-agreement-pda/305073.png","ImageObject",442,249,{"name":88,"@type":89},"Taylor Morgan","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-09-27","2026-09-19",true,{"@type":98,"interactionType":99,"userInteractionCount":9},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"What is the Premium Deposit Agreement (PDA) used for?","Question",{"text":108,"@type":109},"It funds a life insurance policy with a lump sum through a Premium Deposit Account (PDA) that automatically pays annual premiums. The structure is intended to help avoid a Modified Endowment Contract (MEC).","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"When must annual premiums be paid to prevent the policy from becoming a MEC?",{"text":113,"@type":109},"Annual premiums are paid on the policy anniversary date. This timing is used to avoid the policy becoming a MEC.",{"name":115,"@type":106,"acceptedAnswer":116},"What happens if a withdrawal occurs during the PDA funding period?",{"text":117,"@type":109},"In the majority of states, full withdrawals are allowed, and both full withdrawals and partial withdrawals result in termination of the Premium Deposit Agreement. The agreement cannot be reinstated after termination.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},305073,1790534241,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":35,"category_name":36,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":73,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":73,"language":135,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":136,"faqs":137,"seo_title":138,"seo_description":61,"update_tm":139,"read_time":9},1099523885336,"https://ap-avatar.wpscdn.com/davatar_276721f389ce27ea32af1340a28f341c","Life  \nPremium Deposit Agreement  \nMidland National® Life Insurance Company  \nThe Premium Deposit Agreement (Agreement) can provide a simple solution to fund a life insurance policy with a lump sum and not create a Modified Endowment Contract (MEC)1. With one lump sum payment, it establishes an account called a Premium Deposit Account (PDA) that automatically pays the first and future annual premiums.  \n\n| Highlights | Available at no extra cost to establish or maintain.\u003Cbr>Current interest rate of 5.00%, subject to change in the future.\u003Cbr>Maximum of 10 annual premium payments.\u003Cbr>Credited rate is locked in at time of deposit.\u003Cbr>In the majority of states, the Agreement is not a part of the life insurance policy. It is an Agreement outside the contract. |\n| --- | --- |\n| Availability | • The Agreement is available for single life indexed universal life policies.\u003Cbr>• Is only available at time of policy issuance (cannot be added to an in-force policy). |\n| Deposit limits | Minimum initial deposit\u003Cbr>• $10,000\u003Cbr>Maximum deposit amount\u003Cbr>• The maximum deposit amount is limited by the premium limits imposed upon the product.\u003Cbr>• The maximum cannot exceed 10 times the policy's annual planned premium.\u003Cbr>Maximum number of deposits\u003Cbr>• Only one deposit can be made within the first year. Two additional deposits can be made after year one.\u003Cbr>• The additional deposits can be made at any time while the PDA is active but funds must be distributed no later than the 10th policy anniversary. The following will also apply:\u003Cbr>» Each of the new premium payments must be equal; and\u003Cbr>» The new premium amount must be equal to or greater than the current planned premium amount. |\n| Premium\u003Cbr>payments | Minimum number of payments required to elect the PDA – 3 payments Maximum number of payments – 10 payments\u003Cbr>The total premium amount applied to the life insurance policy consists of the amount taken from the PDA plus the interest credited on that amount. Annual premiums are paid on the policy anniversary date to avoid the policy becoming a MEC.1\u003Cbr>If the amount in the PDA is not enough to cover an annual premium due, the PDA balance is applied to the premium and the Agreement is terminated. Written notice is provided to the policyowner and direct billing of premiums begin.\u003Cbr>A policy with a PDA\u003Cbr>• Additional premium payments, in addition to PDA funds, can be made to the policy. Any additional payments are not billed for or withdrawn through EFT.\u003Cbr>*Note: if the additional premium causes the policy to become a MEC1, the Agreement will be terminated (see 'Termination' section of this flyer).\u003Cbr>• The mode of payment must be annual direct. |\n\nAdministrative Office • One Sammons Plaza • Sioux Falls, [SD |](SD | MidlandNational.com)[ ](SD | MidlandNational.com)[MidlandNational.com](SD | MidlandNational.com)  \n962MM-1 FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES. 2-26  \n\n| Interest crediting | The interest crediting rate is set at the time of the deposit and is locked in for the duration of the PDA. Interest is not credited until the premium payment is taken from the PDA for payment into the policy. If the PDA has more than one deposit, each deposit will be credited separately and could have different rates if the credit rate has changed since the time of the initial deposit.\u003Cbr>The total premium amount applied to the policy will consist of (1) an amount taken from the PDA, and (2) interest accrued on the account.\u003Cbr>The interest is not tax-deferred. The policyowner will receive an annual 1099-INT tax form for income tax purposes.\u003Cbr>Early withdrawal of PDA deposits is allowed, but no interest is credited to such deposits (subject to state variations). |\n| --- | --- |\n| Withdrawals | Only full withdrawals are allowed in the majority of states. A full withdrawal, or any partial withdrawal, will result in the termination of the Premium Deposit Agreement. Loan and withdrawalscan be accessed from the policy cash surrend","cbCaivLX1NEj3eaz","https://ap.wps.com/l/cbCaivLX1NEj3eaz","pdf",94457,"English","# Highlights\n# Availability\n# Deposit limits\n# Premium payments\n# Interest crediting\n# Withdrawals\n# Termination\n# Compensation\n# 1035 Exchanges\n# Form number","[{\"question\":\"What is the Premium Deposit Agreement (PDA) used for?\",\"answer\":\"It funds a life insurance policy with a lump sum through a Premium Deposit Account (PDA) that automatically pays annual premiums. The structure is intended to help avoid a Modified Endowment Contract (MEC).\"},{\"question\":\"When must annual premiums be paid to prevent the policy from becoming a MEC?\",\"answer\":\"Annual premiums are paid on the policy anniversary date. This timing is used to avoid the policy becoming a MEC.\"},{\"question\":\"What happens if a withdrawal occurs during the PDA funding period?\",\"answer\":\"In the majority of states, full withdrawals are allowed, and both full withdrawals and partial withdrawals result in termination of the Premium Deposit Agreement. The agreement cannot be reinstated after termination.\"}]","962MM-1 PDA Feature Card - Premium Deposit Agreement (PDA) | PDF",1789821700]