What is the definition of Premium Offset Method?
Premium Offset is elected by the policyowner as a method of paying the policy premiums due, by using existing policy values. CAUTION, premium offset is not guaranteed to cover all the premium due and additional out-of-pocket payments may still be required to keep the policy in-force. The numeric method code indicates the manner in which premiums will be satisfied from policy values once the option goes into effect. The odd numbered method (1, 3, 5, 7 or 9) indicates that premium offset is elected, but it is not in effect. The even numbered method (2, 4, 6, 8 or 10) indicates that premium offset is elected and is in effect. Note: policy value restrictions can apply when the premium offset option is elected and/or in effect.
