Base Premium

The base premium is the required scheduled payment for the foundational whole life policy. It is the minimum premium necessary to keep the policy in force and is specified in your policy contract.

In whole life banking, policies are typically structured to minimize the base premium relative to the total funding going into the policy. A lower base premium relative to the PUA rider means:

• More of each dollar goes into Paid-Up Additions (which build cash value faster)
• The policy has more flexibility — PUA contributions can usually be reduced or skipped in a given year without lapsing the policy
• The policy stays well below MEC limits with room to add PUAs

The base premium is a contractually required payment — missing it (without using dividend or PUA funds to cover it) can put the policy at risk of lapse.

Related terms: Paid-Up Addition (PUA), Term Rider, MEC (Modified Endowment Contract)