Set or "Target" Premium

"Target" premium refers to the amount of premium that the insurance company has determined will keep the policy in force for a certain period, typically to a specified age such as 100.

This target premium is not the minimum required to keep the policy active, but rather an amount that, if paid, is expected to maintain the policy's death benefit without requiring additional out-of-pocket premiums in the future, assuming certain conditions are met, such as projected interest rates and no withdrawals or loans taken against the policy.

The target premium helps to ensure the policy achieves the desired savings and insurance objectives, such as accumulating cash value or providing a death benefit. Paying the target premium can help policyholders avoid the risk of a policy lapse, which can occur if the cash value of the policy is not sufficient to cover the cost of insurance and other expenses.