Planned premium is the amount a client intends to pay on a flexible-premium policy such as universal life, indexed universal life, or variable universal life, based on illustration assumptions. Unlike required premiums on term or whole life, planned premiums can often be increased, decreased, or skipped, subject to policy charges and guarantees. If planned premiums prove too low relative to actual cost of insurance, expenses, and credited interest, the policy may underperform or lapse early unless additional funding is provided to sustain the coverage and desired cash values.

Advisors choose a planned premium when designing flexible-premium policies, testing different funding levels and durations in illustrations. During periodic reviews, they compare actual contributions and performance to the original plan and may recommend adjusting the planned premium to keep the policy on track. Carriers often show minimum, target, and higher funding levels for comparison. Understanding planned premiums helps advisors explain that these policies are not truly set-and-forget; they need ongoing monitoring and the flexibility to adapt funding over time.