Premium

Premium is the minimum premium payment required to issue the policy. For policy years one through eight, payment of this monthly minimum premium every month will keep the policy in force.  Beginning in the eighth policy year, positive cash surrender value is required to keep the policy in force. It is based on current charges, including any rider charges, and assumes no interest is earned on the net premiums. The minimum premium is re-calculated whenever a new layer of coverage is added.

The policy must have a base coverage segment and the coverage calculation activity must be processed on the policy before this activity can be added.

To add this activity, open the term policy and select Add Activity from the secondary menu.  

Add Activity Link on Policy Screen

Select Premium from the activity drop down box.  Then enter the effective date, the premium amount received and the suspense record information.  Click OK and the activity will be listed on the Activity screen with a lightning bolt icon next to it.  Click the lightning bolt icon to process the activity.

Add Activity Window with Premium Details

Add Activity Window with Suspense Details for Premium