Premium projection is the forward-looking estimate of how much premium a policyowner will need or choose to pay into a life insurance or annuity contract over time to achieve specific objectives. In flexible-premium products such as universal life or indexed universal life, projections may include target premiums for desired cash value, minimum premiums to keep the policy in force, and no-lapse guarantee premiums. Premium projections are generated through carrier illustration systems using current assumptions for interest rates, index credits, policy charges, and loan activity. They help clients and advisors see whether planned contributions are adequate and how funding patterns affect duration, guarantees, and potential income.

In practice, premium projection is a central part of case design and ongoing policy review. Advisors run illustrations to show clients how different funding strategies-level premiums, catch-up contributions, or front-loaded payments-affect long-term outcomes. During reviews, they update premium projections based on actual payments and current performance, then recommend adjustments if the policy is off track. For large or complex cases, premium projections may be integrated into broader financial plans, business cash flow models, or estate-tax funding analyses. Clear communication about premium projections helps clients understand that premiums are not static and may need to change as markets, interest rates, and personal goals evolve.