Premium Reduction

Premium Reduction refers to the decrease in the amount of premium payments that a policyholder is required to pay while still maintaining the desired level of death benefit coverage. This can occur due to positive performance in the index-linked interest crediting, which may allow the policyholder to reduce their out-of-pocket costs while the policy's cash value continues to grow. Premium reductions may be requested by the policyholder or suggested by the insurer, but it's important to ensure that reduced premiums are still sufficient to keep the policy in force and prevent it from lapsing.